Mat paid but not made any entries in the books

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

17 October 2013 If Public co. had paid Income tax in MAT of Rs.24 Lakh (FY 12-13), whereas neither made provision for tax in FY 12-13 nor any shown any entry relating to MAT or payment of tax.

Assume that tax as per Income tax is zero because of losses in FY 12-13.

Kindly suggest us what are the entries to be pass in book in FY 13-14 relating to above.

CA Harish Shyam Choudhary

CA Harish Shyam Choudhary (Expert)
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18 October 2013 Firstly recognises MAT Credit in the books as an assets under the head "loans & Advances".

in FY 2013-14, i.e. in the year of set off of credit, the amount of credit availed should be shown as a deduction from the "provision for Taxation" on the liabilities side of the balance sheet.

Under Profit & Loss account, MAT paid is fully charges to P&L A/c. as expenses

CA Harish Shyam Choudhary

CA Harish Shyam Choudhary (Expert)
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18 October 2013 In case of no entry being passed through books in FY 2012-13, then you can pass the same as on adjustment Entry as on 01/04/2013

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Querist : Anonymous

Querist : Anonymous (Querist)

23 October 2013 If MAT shown in P&L a/c of current year 2013-14, then under prior period item or under income tax expense. Since it is last year tax...

CA Harish Shyam Choudhary

CA Harish Shyam Choudhary (Expert)
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23 October 2013 you should shown MAT credit under provision of income tax as Current tax - MAT credit

-PROVISION OF INCOME TAX
--CURRENT TAX
---MAT CREDIT

Querist : Anonymous

Querist : Anonymous (Querist)

25 October 2013 The above said entry is for current year. But I want last year entry to be enter in current year....