Mat credit entitement
This query is : Resolved
02 July 2012
AS per the current year we have to pay MAT as our accounts profit is more then income tax profits so how we will show the effect as per the revised scehudle 6.IN THE PROFIT AND LOSS ACCOTNS AND IN THE BALANCESHEET
for example : the tax as per income tax is coming RS5 crore and as per book profit tax is coming around 15 crore ..so we have to make provison for 15 crore and coreespondigly the mat credit of rs 10 crors has to be takn . so anyone can suggest me the treatment how to shoe the effect of both as per revised schedule 6 in PROFIT AND LOSS AS WELL AS IN THE BALANCE SHEET .
for example : the tax as per income tax is coming RS5 crore and as per book profit tax is coming around 15 crore ..so we have to make provison for 15 crore and coreespondigly the mat credit of rs 10 crors has to be takn . so anyone can suggest me the treatment how to shoe the effect of both as per revised schedule 6 in PROFIT AND LOSS AS WELL AS IN THE BALANCE SHEET .
02 July 2012
Following Entries will be passed in the books of accounts-
1.Mat Credit Entitlement(BS) Dr. 10 Crs
To Mat Credit Entitlement(PNL) 10 Crs
In Balance sheet-
MAT credit entitlement will be shown under "Long term Loans & Advances".
In Statement of profit & loss-
It will be shown under Provision for Taxation as credit item.
2. Provision for current tax(PNL)Dr. 15Crs
To Provision for Tax(A.Y12-13) 15Crs
1.Mat Credit Entitlement(BS) Dr. 10 Crs
To Mat Credit Entitlement(PNL) 10 Crs
In Balance sheet-
MAT credit entitlement will be shown under "Long term Loans & Advances".
In Statement of profit & loss-
It will be shown under Provision for Taxation as credit item.
2. Provision for current tax(PNL)Dr. 15Crs
To Provision for Tax(A.Y12-13) 15Crs
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02 July 2012
Thanks AMIT but as per the balancesheet is concerend ypu r correct as i have done the same treatment but as per the proft and loss i m unable to understnd how i will do these treatment as per the revised schedule 6 . so plz clarify how it will be shown in profit and loss
02 July 2012
There will be one heading after net profit before tax-
Provision For Taxation-
Current tax- Rs. 15 Crs
Mat Entitlement-Rs. (10)Crs
So effectively tax will be Rs. 5 crs only.
Provision For Taxation-
Current tax- Rs. 15 Crs
Mat Entitlement-Rs. (10)Crs
So effectively tax will be Rs. 5 crs only.
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