Accounting of minimum aulternative tax
This query is : Resolved
22 September 2012
Sir,
Please Tell me the accounting treatment of MAT, if MAT Attracts a company First time.
Actually Current year Book Profit is suppose Rs.5000 and Carried Forward Loss Rs.150000
Therefore there is no Tax liability after adjusting Previous Year Loss but Mat will attract For Rs.9250 (50000*18.5%).
Please tell me which journal entry is needed to pass in this case for creating Provission.Is the Following entry is Correct????
MAT Credit A/c Dr.9250
(Current Assets)
To Provission For MAT A/c. Rs.9250
(Current Liability)
Please Tell me the accounting treatment of MAT, if MAT Attracts a company First time.
Actually Current year Book Profit is suppose Rs.5000 and Carried Forward Loss Rs.150000
Therefore there is no Tax liability after adjusting Previous Year Loss but Mat will attract For Rs.9250 (50000*18.5%).
Please tell me which journal entry is needed to pass in this case for creating Provission.Is the Following entry is Correct????
MAT Credit A/c Dr.9250
(Current Assets)
To Provission For MAT A/c. Rs.9250
(Current Liability)
22 September 2012
1) Profit and loss a/c Dr
To Provision for IT
(Being provision made under MAT)
ii) MAT Credit entitlement a/c Dr
To profit and loss a/c
(Being credit entitlement booked)
To Provision for IT
(Being provision made under MAT)
ii) MAT Credit entitlement a/c Dr
To profit and loss a/c
(Being credit entitlement booked)
22 September 2012
agree with Warrier sir... first provision to be created than assets booking.
22 September 2012
The Entries Provided by Warrier Sir are Correct as Per Guidance Note Issued by ICAI on MAT.
Although Entry Effect is Same as Written by You and by Sir.
But Entry Need to Pass as Said by Sir Only.
Although Entry Effect is Same as Written by You and by Sir.
But Entry Need to Pass as Said by Sir Only.
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