Mat computation

This query is : Resolved

Suresh (Querist)
Follow

29 July 2011 Dear Sir

good morning

can you give solution on below doubt?

our book profit Rs.100 lakh
our unabsorbed bus.loss Rs. 40 lakh

MAT computation will be on Rs.100 lakh or Rs.60 Lkhs?

whichever is applicable?

CA Koustubh Vishnu Bhatye

CA Koustubh Vishnu Bhatye (Expert)
Follow

29 July 2011 One of the adjustment to book profit while computing MAT is "deduct unabsorbed depreciation or loss brought forward whichever is less".

If unabsorbed business loss of Rs.40 lacs is pure business loss and not includes any unabsorbed depreciation (i.e. unabsorbed depreciation is "NIL"), then you have to compute MAT on Rs.100 Lacs and not Rs.60 Lacs.

Because in this case unabsorbed depreciation is equal to "0" which is least for deduction from book profit.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
Follow

29 July 2011 If there is no unabsorbed depreciation as per books of account, book profit in the cited case is Rs. 100/- Pl see explanation (b) to section 115JB(2).

Upgrade to CAclubindia Pro. Subscribe Now!