Mat calculation

This query is : Resolved

Ashish Sharma (Querist)
Follow

19 September 2011 Dear Experts,

While calculating MAT do we deduct interest and other income from book profit or not as this will charge under other head of incomes?

Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
Follow

19 September 2011 We Deduct the same...as as per the compaines act there is no bifurfication of income under various heads...and P&L is prepared on the basis of all the income...hence you need to include the incomes and deduct the expenditure while calculating book profit under MAT.

Ashish Sharma

Ashish Sharma (Querist)
Follow

19 September 2011 so its means it will be a double taxation as it 1st taxed in MAT and then in other sources income or capital gain

Message likes : 1 times

Upgrade to CAclubindia Pro. Subscribe Now!

Ashish Sharma

Ashish Sharma (Querist)
Follow

19 September 2011 so its means it will be a double taxation as it 1st taxed in MAT and then in other sources income or capital gain

Vivek Mehta (CA, DISA,CS, MBA)

Vivek Mehta (CA, DISA,CS, MBA) (Expert)
Follow

19 September 2011 no....you are wrong...as per Companies act there is no such bifurcation of the income under various heads, and the tax payable by the company is higher of the taxes as payable under the provisions of MAT or as under the normal provisions of Income Tax Act. Its not that MAT is substituted at the place of BNP head. hence there is no double taxation...