Calculation of MAT

This query is : Resolved

Monil Shah (Querist)
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23 September 2007 Can we take deduction of "withdrawl of revaluation reserve" from book profit to calculate tax as per MAT.I have heard that it is applicable from AY 2007-2008.IS it true? Please give me detail information on the above topic.

Late CA Sampat Jain

Late CA Sampat Jain (Expert)
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23 September 2007 The finance act 2006 , has amended section 115JB with effect from 1-4-2007 (Asst Year 2007-2008)
to provide that book profit shall be reduced by :

iia) the amount of depreciation debited to the profit and loss account (excluding the depreciation on account of revaluation of assets); or

(iib) the amount withdrawn from revaluation reserve and credited to the profit and loss account, to the extent it does not exceed the amount of depreciation on account of revaluation of assets referred to in clause (iia);

Mallidi Ramabrahmananda Reddy

Mallidi Ramabrahmananda Reddy (Expert)
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23 September 2007 It is cleared from the extract provided by Mr. Sampat Jain that the intention of the legislature is that the effect of revaulation should not be there on book profit for the purpose of MAT u/s115JB.

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AjeshkumarM.P

AjeshkumarM.P (Expert)
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24 September 2007 same as above

Miss Komal Mantri

Miss Komal Mantri (Expert)
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26 September 2007 dear

Withdrawal of revaluation reserve to the extent of depreciation disallowed on revaluation of asset shall be allowed as deduction..

Regards
Komal