10 April 2012
Current tax A/c Dr To Provision for Income Tax A/c If the tax liability is by MAT, then Current Tax A/c Dr To Provision for Income tax A/c
MAT Entitlement credit A/c Dr To Profit and Loss A/c (by deduction from current tax) Clearance of liability: Provision for tax A/c Dr To Bank A/c or To MAT Entitlement Credit A/c (If paid by utlisation of MAT Credit).
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