THE AMOUNT OF MAT CREDIT THAT CAN BE CARRIED FORWARD TO NEXT YEARS WILL INCLUDE: ONLY INCOME TAX OR INCOME TAX+ SURCHARGE+ CESS.
WHAT WILL HAPPEN IF SURCHARGE IS NOT APPLICABLE TO THE COMPANY IN SUBSEQUENT YEARS,i.e. WILL THE AMOUNT OF SURCHARGE WHICH IS PAID AS PER MAT WILL LAPSE.
11 October 2009
Credit should be accounted for income tax, surcharge, primary education cess, and secondary education cess (atleasat you should have workings with you for break up) and in books can be shown as one amount.
In the year of lapse you should transfer to profit and loss account. Until then it should be carried over.
CAclubindia
