MAT and Defered tax

This query is : Resolved

Tilak Agrawal (Querist)
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14 January 2009 sir/madam

can u plz answer following query--

Which/all of the following we need to add (+) in Net Profit for arriving at book profit for calculating MAT.

--Provision for FBT
--Deferred tax liability
--Provision for Electricity Bill Payable

Which/all of the following we need to add/deduct (+) /(-) in/ from Net Profit for arriving at book profit for calculating Defered tax Liability/asset.

-- provision for FBT
-- Provision for Electricity bill payable
-- Provision for MAT
-- Rent Received in Advance (as it amounts to temporary difference because it is not credited to P/l A/c due to Mercantile system of Accounting BUT taxable as per Income Tax Act 1961)

CA Pawan Goswami

CA Pawan Goswami (Expert)
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15 January 2009 For the calculation book profit for MAT, provision for FBT and provision for Electricity Bill Payable are not to be added to Net Profit.Deferred tax liability will be added back.