AS 22

This query is : Open

Pravin Kumar Karn (Querist)
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24 December 2009 Dear Friends
I am working in company which have two manufacturing Unit. Out of These Two one unit in situtated in Specified area and its profit is 100% exempt from tax US 80IB. Company is paying MAT on its profit as its one unit profit is 100% exempt. Company has track record of earning profit and it is estimated that it will earn profits in forseeable future to.
I want to know how to treat MAT credit available for compulation of defferecr tax asset/liability.
Kindly clarify.

CA Vijay Kumar Gupta

CA Vijay Kumar Gupta (Expert)
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26 December 2009 If there is a virtual certainty of earning profits as you have stipulated in your query, you can claim Mat credit available as per As-22.