Set off of mat credit entitlement

This query is : Resolved

Guest

Guest (Querist)

09 January 2013 Sir/Madam,

In computing the tax liability of a Pvt. Ltd. Company the normal tax (say 100/-) but there is no Book Profits (i.e. MAT is Nil). However there is a MAT credit entitlement available (say 200/-).

I want to know whether i can set off the tax payable from MAT Credit thereby making tax payable to be Nil.

Thanks

CA CS Amit S. Kedia

CA CS Amit S. Kedia (Expert)
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09 January 2013 Yes, Mat credit entitlement of earlier years can be set off in the current year since you have to pay tax as per normal provisions.
In the current year, tax liability will be Nil and 100 will be be continued as Mat credit entitlement