21 August 2011
MAT Credit is available in the year if tax is payable by Company as per normal provisions and not as per MAT provision.... My question is, can MAT credit be availed if in any P.Y, company had tax liability as per IT provisions and after deduction of TDS company had a refund and (had to pay no tax)?, So should i take a MAT credit as difference between tax as per MAT provision and tax as per Income Tax provision (before TDS deduction)? for availing MAT credit?
TDS is irrelevant for MAT Credit. TDS is just an advance tax, don't relate it with Income tax liability.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
21 August 2011
Thank You Sir, Please clarify, Does that mean that underlining point is, that for MAT credit calculation, i have to consider the difference between Tax Thereon liability (flat rate 30% before taking credit of TDS deducted) and liability ought to have been paid as per MAT calculation for any such relevant P.Y ?
21 August 2011
As per sec 115 JAA amount of credit allowed to be carried forward is equal to tax paid under sec 115JB minus tax payble on total income computed under normal provisions of act. So here u have to take tax after TDS. Regards, Sumat Singhal
CAclubindia
