Ii5jb

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2013 A company is paying income tax under normal provisions of the Income tax Act,1961. In other words, the said company is not obliged to pay income tax u/s 115JB. In such a case, whether form 29B has to be electronically filed or not.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 August 2013 The company will have to obtain the certificate from a CA showing the computation of book profit even if tax as per normal provisions is MORE than MAT.

This will substantiate the claim of the assessee that Income tax is higher than MAT.

Querist : Anonymous

Querist : Anonymous (Querist)

29 August 2013 If tax has to pay as per normal provisions, then MAT provisions doesn't attract. If there is no MAT, then report in form 29B is not required as per section 115JB(4).

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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29 August 2013 1. Section 115JB is applicable to ALL companies.

2. EVERY company has to compute tax as per normal provisions and MAT. Thereafter higher of the two amounts has to be paid as tax liability.

3. Accordingly EVERY company is required to compute book profits for the purpose of Section 115JB even though the company may end up making payment as per normal provisions.

4. Section 115JB(4) starts with the following words:

"Every company to which this section applies......"

Section 115JB applies to ALL companies. Accordingly a company which is making tax payment as per normal provisions is also required to obtain a certificate from a CA.