Applicability of MAT

This query is : Resolved

VISWESWARA RAO (Querist)
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27 April 2011 Dear Friends

Please clarify Private or Public limited Company is required to compute Book Profit u/s 115JB of the I.T.Act even though there is no Book Profit.

Example

Other Income - NIL

Ag Income - 6,00,000

Less : Expenses (Including Ag Expenses)- 3,00,000
==========
Net Profit as per P&L A/c 3,00,000
=====
The Company has not computed MAT as the profit is exempt u/s 10 of the I.T.Act but AO is asking for compute the Book Profit by claiming exemption and asking for submit the Audit Report in Form 29B.

If Book Profit is calculated by claiming exemption as per Explanation 1 of Section 115JB. The Company is required to get Report from the Auditor.

Please let me know exact situation to compute Book Profit and get the Audit Report in Form 29B.

Thanks in Advance

K.K.VISWESWARA RAO
Tax Advocate.