12 July 2010
Provision for NPA needs to be done based on RBI policy for Asset Based Financing. For calculation of Provision for Taxation, as this is disallowed under IT act, it needs to be added back.
However, would like to ask what treatment needs to be given for Excess Provision written back . Should it be deducted from Net Profit for calcuation of Profit for Taxation / MAT ( book profit )
What implication under MAT for Provision for NPA and Excess Provision written back.