How we calculate profit for purpose MAT?

This query is : Resolved

Kuldeep Maloo (Querist)
Follow

11 October 2007 Pls How we calculate profit for purpose MAT? also give me detail regarding disallowance of depreciation.

Ravikumar.G

Ravikumar.G (Expert)
Follow

11 October 2007 Net profit before tax is to be considered as Book profit for MAT purpose. (Below the lines are not considered)

Meanwhile FBT is not an allowable expenditure as per IT act. However for the purpose of MAT tax u/s 115JB FBT is an allowable expenditure.

Disallowance of Depreciation will not arise for the purpose of MAT.

Message likes : 1 times

Ravikumar.G

Ravikumar.G (Expert)
Follow

11 October 2007 For the purpose of Income tax working in Profit and loss adjustment account:
From that Book profit, Co's Act Depreciation added back and IT depreciation is lessen. From that profit Income tax @ 30% is calculated.

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!