In FY 2011-12 the companies Profit & Loss accounts Books Profit shows the Rs. 22,25,475/-as on 31st March-2012. Profit & Loss accounts includes the Long Term Capital Gain on Share for RS.14,35,345/- & Dividend Rs.34710/-.
While preparing computation of income of the company the normal Tax Due is Rs.2,65,241/- and the MAT due is RS.4,24,064/-. Long Term Capital Gain for Rs.14,35,345/- & Dividend Rs.34,710/- is exempt U.S. 10(38).
MAT due is correct or not. What can i do. What is the actual accounts treatment
12 April 2012
Assuming Book Profit is Rs. 2,225,475, then Dividend earned shall be excluded by virtue of Sec 10. Then book profit shall be Rs. 2,225,475 - Rs. 34,710 = Rs. 2,190,765. MAT tax is 18.54% = Rs. 406,168. MAT Credit = Rs. 406,618 - Rs. 265,241 = Rs. 140,927.
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