Mat credit

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

31 August 2012 If a company has loss in the previous year but it has to pay tax on the basis of MAT, can the co. be entitled to take credit of such mat in succeeding year when the tax will be paid under the normal provision?

CA. RAVIKUMAR

CA. RAVIKUMAR (Expert)
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01 September 2012 No,
MAT Credit shall be set off against the excess of tax payable under normal provision over the tax payable under MAT.

Ex: during next year if You have MAT Rs 30000 and normal tax of Rs 40000,
then Rs 10000 is MAT credit available and balance of Rs 30000 is payable