Mat adjustment

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 November 2014 We have paid MAT for last 3 years. This year all losses has been wiped out and we earn profit.

We have to adjust MAT credit this year only or there is percentage to adjust the same.

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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19 November 2014 MAT will be adjusted in the year in which tax as per normal profit EXCEEDS the tax calculated as per MAT.

The set-off will be restricted to the following:

Tax as per normal provisions less tax as per MAT.

For eg. carry forward MAT is Rs. 50 lakhs.

During the year tax as per normal provisions comes to Rs. 80 lakhs & tax as per MAT comes to Rs. 60 lakhs.

You will be allowed to adjust only Rs. 20 lakhs (80 lakhs - 60 lakhs) out of Rs. 50 lakhs.

The balance Rs. 30 lakhs will be carried forward.

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Querist : Anonymous

Querist : Anonymous (Querist)

20 November 2014 Thank you, sir for your reply.

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CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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20 November 2014 You are welcome. You should use the thanks button to convey your thanks.

If you feel that I have satisfactorily answered your question then please nominate me for Most Effective Expert

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