14 June 2012
XYZ CO had paid MAT in the previous year.. the company forget to record the mat credit entiltlement in the previous year.
The MAT Laibility arrise in the previous say 1 lacs out of whih company paid as advance tax 0.5 lacs and balance 0.5 lacs by way of self assessment tax
In the previous the company tax liablity as per Income tax law is zero
So my question can company record the MAT CREDIT entitlement in the current year of Rs 1 lacs by passing of Journal entries
MAT credit A/c Dr 1.00 lacs TO Advance Tax 0.5lacs To Self Ass.Tax 0.5lacs
is the above entries passesed is correct or there are any other way to record??? pl reply....
CAclubindia
