Set off of mat

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 September 2011 Company has paid Minimum Alternative Tax on at the time of filing return of income of AY 10.11. Whether all the MAT can be used as set off for AY 2011.12? In other words tax liability of AY 11.12 is after deducting the MAT paid for AY 10.11.

Yogesh Agarwal

Yogesh Agarwal (Expert)
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18 September 2011 The MAT credit is available to the company if it paid in previous yrs to the extent in excess of normal tax. In order to take credit u need to compute tax in both way normal and under mat regime for current py. If normal tax is in excess of mat then mat credit is available to the extent of the diff of these two taxes.