Mat credit
This query is : Resolved
19 September 2012
Hello,
In the previous year 2010-11 the tax as per income tax profit was 5 Cr and as per MAT Provision the liability was for 7.5 Cr. SO the assessee paid the amount of 7.5 Cr and made the provision for Tax with 7.5 Cr in the books of account.
But in next FY 2011-12 he has to pay the normal tax as per the income tax profit amount of Rs 7 Cr and there is no MAT Provision in the FY 2011-12.So, I need to know the following thing:
(i) In FY 2010-11 assessee had to make the entries of Mat credit in Profit and Loss account as well as Balance sheet with 2.5 Cr.
(ii)Can Assessee get the MAT Credit in the FY 2011-12 with the 2.5 Cr and if yes what should be the entries in books of account as he is only paying the amount of tax amount of Rs 4.5 Cr because of MAT Credit.
Kindly suggest me the same, I would be thankful to you.
In the previous year 2010-11 the tax as per income tax profit was 5 Cr and as per MAT Provision the liability was for 7.5 Cr. SO the assessee paid the amount of 7.5 Cr and made the provision for Tax with 7.5 Cr in the books of account.
But in next FY 2011-12 he has to pay the normal tax as per the income tax profit amount of Rs 7 Cr and there is no MAT Provision in the FY 2011-12.So, I need to know the following thing:
(i) In FY 2010-11 assessee had to make the entries of Mat credit in Profit and Loss account as well as Balance sheet with 2.5 Cr.
(ii)Can Assessee get the MAT Credit in the FY 2011-12 with the 2.5 Cr and if yes what should be the entries in books of account as he is only paying the amount of tax amount of Rs 4.5 Cr because of MAT Credit.
Kindly suggest me the same, I would be thankful to you.
20 September 2012
Yes you can take the credit.
Provision for current tax account account debit
to Mat Credit
to Cash Bank
Provision for current tax account account debit
to Mat Credit
to Cash Bank
20 September 2012
Hello Sir,
Firstly do we need to book the Mat credit entry in our books and after then this entries is to be booked in books.
SO kindly let me know what will be the nature of MAT Credit.
Firstly do we need to book the Mat credit entry in our books and after then this entries is to be booked in books.
SO kindly let me know what will be the nature of MAT Credit.
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