Calculation of income tax

This query is : Resolved

surender (Querist)
Follow

27 May 2012
We are a Pvt Ltd company :

A/Y 2011/12

Book Profits Rs 3200000

Net Taxable Income before adjment of b/f depreciation & bsiness loss Rs.2600000

Depreciation B/F : 1900000
Business Loss B/F : 1000000

Mat calculated : 600000
Tax paid : 620000

A/Y 2012/13

Book profit Rs. 5800000
Taxable income Rs. 5500000

There is carried forward MAT of A/Y 2011/12 and carry forward depreciation and business loss as above .

Alreadpaid Adva Tax Rs. 1100000

Please advise how to adjust the Mat recoverable and brought forward dep andbusiness loss

urgent

Please advise

Nilang

Nilang (Expert)
Follow

28 May 2012 For A.Y.2011-2012
Taxable Income As per Income tax would be nil And Rs.3,00,000 (26,00,000-10,00,000-19,00,000) Unabsorbed depreciation would be carried forward to A.Y.2012-2013.However MAT would be payable Rs.593280 say Rs.6,00,000 would be carried forward next year.

Following entries Should be Passed
Profit and loss account Dr Rs.6,00,000
To Provision for income tax Rs.6,00,000

For A.Y.2012-2013

Taxable income would be 52,00,000 (55,00,000-3,00,000 unabsorbed depreciation set off brought forward from A.Y.2011-2012) on which tax @ 30.90% i.e.52,00,000 X 30.90%=16,06,800

58,00,000*19.055% Rs.11,05,190

Hence The company have to Pay Rs.16,06,800 out of which Rs.5,05,190 would be adjusted against MAT credit of Previous year and Balance 11,05,190 has to be paid through Challan.Balance of MAT credit of Rs.94,810 would be available in succeeding year up to A.Y.2021-22

Following entries should be passed
MAT Credit A/c. Dr. Rs.5,05,190
To Profit and loss account Rs. 5,05,190
Profit And loss account Dr.Rs.16,06,800
Provision for Income Tax Rs.16,06,800

At the time of Final Assessment

Provision for Income Tax Dr. Rs. 16,06,800
To MAT Credit Rs.5,05,190
To Advance Tax Rs.11,00,000
To Bank Rs. 1,610 (Self assessment tax)

CA.Nilang A Dalal
nil_dalal@yahoo.co.in

Message likes : 1 times