Book Profit Tax u/s 115JB of the I.T.Act
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
25 April 2011
Dear friends
Facts :
The assessee is a Private Limited Company engaged in the business of construction of Residential Apartments. The Company has executed Residential Project and during the financial year 2009-10 the Project is completed.
Exemption u/s 80IB(10) of the I.T.Act has been claimed on the net profit derived from the project as the Project fulfilled all the conditions laid down in the I.T.Act.
Except this the Company has no other Income.
Financial Statment of the Company are prepared as per Schedule VI of the Company Act.
NOW MY QUESTION IS :
The Company is liable to compute Book Profit tax u/s 115JB of the I.T.Act The Company is claiming net profit exemption u/s 80IB(10).
If the company is liable to pay MAT u/s 115JB, the company has not paid any Advance Tax, So the company is liable to workout the Interest u/s 234B & 234C.
Thanks in Advance
K.K.VISWESWARA RAO
Tax Advocate
Facts :
The assessee is a Private Limited Company engaged in the business of construction of Residential Apartments. The Company has executed Residential Project and during the financial year 2009-10 the Project is completed.
Exemption u/s 80IB(10) of the I.T.Act has been claimed on the net profit derived from the project as the Project fulfilled all the conditions laid down in the I.T.Act.
Except this the Company has no other Income.
Financial Statment of the Company are prepared as per Schedule VI of the Company Act.
NOW MY QUESTION IS :
The Company is liable to compute Book Profit tax u/s 115JB of the I.T.Act The Company is claiming net profit exemption u/s 80IB(10).
If the company is liable to pay MAT u/s 115JB, the company has not paid any Advance Tax, So the company is liable to workout the Interest u/s 234B & 234C.
Thanks in Advance
K.K.VISWESWARA RAO
Tax Advocate
25 April 2011
Dear
Tax as defined in Sec 2(43) is as detailed below:
It includes tax chargeable under the provisions of this act. Hence tax payable under section 115JB is also covered.
Please refer sec 208 which deals with advance tax which says tax payable exceeds Rs. 10000 in a year, advance tax is payable.
Hence in my opinion interest under section 234B and C is payable
regards
“tax” in relation to the assessment year commencing on the 1st day of April, 1965, and any subsequent assessment year means income-tax chargeable under the provisions of this Act, and in relation to any other assessment year income-tax and super-tax chargeable under the provisions of this Act prior to the aforesaid date 22[and in relation to the assessment year commencing on the 1st day of April, 2006, and any subsequent assessment year includes the fringe benefit tax payable under section 115WA] ;]
Tax as defined in Sec 2(43) is as detailed below:
It includes tax chargeable under the provisions of this act. Hence tax payable under section 115JB is also covered.
Please refer sec 208 which deals with advance tax which says tax payable exceeds Rs. 10000 in a year, advance tax is payable.
Hence in my opinion interest under section 234B and C is payable
regards
“tax” in relation to the assessment year commencing on the 1st day of April, 1965, and any subsequent assessment year means income-tax chargeable under the provisions of this Act, and in relation to any other assessment year income-tax and super-tax chargeable under the provisions of this Act prior to the aforesaid date 22[and in relation to the assessment year commencing on the 1st day of April, 2006, and any subsequent assessment year includes the fringe benefit tax payable under section 115WA] ;]
03 May 2011
IN THIS CASE THE MAT WILL HAVE TO BE PAID BECAUSE TAX PAYABLE ON TOTAL INCOME WILL BE LESS THAN MAT
INTT WILL BE PAID SEE DECISION IN Jt. CIT v. Rolta India Ltd. (2011) 37 (I) ITCL 267 (SC)
INTT WILL BE PAID SEE DECISION IN Jt. CIT v. Rolta India Ltd. (2011) 37 (I) ITCL 267 (SC)
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Is this income indian or foreign income?
- REGARDING GST ON COMMERICIAL PROPERTY
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- TDS U/S. 194NF
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
