10 June 2013
One of my corporate client has computed MAT Liability under section 115JB of I.T. relevent to Astt.Year 2013-14 as Tax Liability as per Income tax Act comes to NIL due brought forward Business loss & Unabsorbed Deprecation of earlier years so MAT Provision is applicable to company.
For Example MAT Liability is Rs.80000/- under Section 115JB of I.T.Act. relevant to Asstt.Year 2013-14. TDS Receivable on Interest received/Job Charges for the same Asst year Rs.93000/- Now query is whichever option is better from tax point of view as under:- i) Either No MAT Laibility is to be paid & adjusted against TDS Rceivable and balance amount to be claimed as refund in I.T. Return. or
ii) MAT Liability of Rs.80000/- is to be paid in the current Asstt.year & claimed Refund of entire Rs.93000/-as TDS Receivable & this MAT Tax so Paid can be set off as credit in subsequent year as and when the tax liability arises as per I.T. Act.
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