Setting-off business loss in pvt ltd.:mat applicable?
This query is : Open
14 July 2012
Hello,
A Pvt Ltd. which has about Rs.75000 of business loss carried forward from the past 2 years made a profit of about Rs.35000 in the year ended 31/3/12. Now, can this profit be set-off against this loss? What about MAT provisions? Will the Company have to pay any tax(MAT) even though the profit this year is less than the loss carried fwd till date?
Hello,
A Pvt Ltd. which has about Rs.75000 of business loss carried forward from the past 2 years made a profit of about Rs.35000 in the year ended 31/3/12. Now, can this profit be set-off against this loss? What about MAT provisions? Will the Company have to pay any tax(MAT) even though the profit this year is less than the loss carried fwd till date?
14 July 2012
Yes the Income tax loss of Rs. 75000 can be set off against the business profit of the current year.If book profit is greater then tax payable under IT then you have to pay MAT.While computing book profit the amount of loss b/f or unabsorbed depreciation whichever is less as per books of account can be reduced from the net profit.
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14 July 2012
I'm slightly confused. The Company in question does not have any fixed asset. Hence the question of Depreciation does not arise.
Business Loss(total of last 2 years): Rs.75000
Current Year's Business Income: Rs.40000
Now please tell me if any tax is payable under MAT.
Business Loss(total of last 2 years): Rs.75000
Current Year's Business Income: Rs.40000
Now please tell me if any tax is payable under MAT.
14 July 2012
please tell me Rs.75000 loss is as per IT or books??
14 July 2012
Rs.75000 is the Income Tax Loss(total of the last 2 years) shown in the ITR-6
21 July 2012
Even though the profit of current year is adjusted from the b/f loss you have to pay MAT on book profit.
28 July 2012
I'm slightly confused. The Company in question does not have any fixed asset. Hence the question of Depreciation does not arise.
Business Loss(total of last 2 years): Rs.75000
Current Year's Business Income: Rs.40000
Now please tell me if any tax is payable under MAT.
I'm slightly confused. The Company in question does not have any fixed asset. Hence the question of Depreciation does not arise.
Business Loss(total of last 2 years): Rs.75000
Current Year's Business Income: Rs.40000
Now please tell me if any tax is payable under MAT.
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