29 January 2010
No it is always after the provision of the liability net of such MAT Credit. It may be noted that MAT credit is available against Tax paid earlier for which a provision should have been made earlier in the relevant year. As such a fresh provision for the same is not to be made.
29 January 2010
15. According to paragraph 6 of Accounting Standards Interpretation (ASI) ‘Accounting for Taxes on Income in the context of Section 115JB of the Income-tax Act, 1961’, issued by the Institute of Chartered Accountants of India, MAT is the current tax. Accordingly, the tax expense arising on account of payment of MAT should be charged at the gross amount, in the normal way, to the profit and loss account in the year of payment of MAT. In the year in which the MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in this Guidance Note, the said asset should be created by way of a credit to the profit and loss account and presented as a separate line item therein.