03 September 2009
how mat tax credit should be reflected in the acounts. moreover when we caclulate the deffered tax asset or liabililty should we take into consideration the mat credit we are entiteled to.
03 September 2009
MAT is a tax liability and is the result of the operating performance of the organisation. A deferred tax asset arises on account of timing differences between taxable income and accounting income It is to be noted that payment of MAT, does not by itself, result in any timing difference since it does not give rise to any difference between the accounting income and the taxable income. Accordingly, the guidance note has opined that MAT credit does not constitute deferred tax asset
04 September 2009
thank u but will u please explain me in deep. becasue in many public co reports i see they recognize the mat tax credit as income and shown it in to the asset side of b\s. under the head loans&advances. moreover many c.a firm includes the mat tax credit in the deffered tax asset or liability schedual.
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