What will be the figure of depn and business loss for mat ?

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uday singh Negi (Querist)
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21 February 2014 dear sir,
please calculate the carry forward depreciation and business loss from given below example for mat calculation

financial year 2006-2007

loss before depreciation 2,86,479/-
depreciation for the year 14,288/-

financial year 2007-2008

loss before depreciation 16,27,377/-
depreciation 31,608/-

financial year 2008-2009

profit for the year 34,802/-

what will be the carry forward business loss ?
and brought forward depreciation ?

thanks

CA Siddhartha Bhardwaj

CA Siddhartha Bhardwaj (Expert)
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21 February 2014 Explanation 1 to Section 115JB provides the manner of computing book profit for the purpose of MAT.

The said explanation provides for deduction of unabsorbed depreciation or loss, whichever is LESS.

In your example, it is not clear whether profit for the year 2008-09 is after adjustment of losses & depreciation or not.

Provide complete details.

uday singh Negi

uday singh Negi (Querist)
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21 February 2014 dear siddhartha sir,

yes i want only unabsorbed depreciation or loss which ever is less ( it's working )

profit for the f.y 2008-2009 is without adjustment of carry forward depreciation and losses , it is only current year's profit after deducting current year's expenses

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uday singh Negi

uday singh Negi (Querist)
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21 February 2014 because in f.y 2009-2010

my auditor has calculate the unabsorbed depreciation and carry forward loss ( which ever is less for mat calculation ) is as follows

computation of total income
___________________________

profit and loss as per book 8,29,297/-

add :-

provision for tax 1,15,000/-
provision for FBT 36,000/-
provision for gratuity 27,456/-
depreciation as per companies act 1,68,151/-
preliminary expenses 37,280/-
service tax penalty 4,974/- 3,88,861/-
_____________________
less :-

depreciation as per income tax act 1,40,409/-
preliminary exp 35d 6,800/- 1,47,209/-
_____________________

taxable income 10,70,949/-

less :(Brought Forward Losses )
A.Y. 2007-08 Rs. 15,16,416 out of which loss of less : 10,70,949/-
Rs. 10,70,949 is to be set-off against profit
of A.Y. 2009-10 and balance of
Rs. 445467/- is to be carried forward.

this is as per income tax calculation and

now as per mat calculation

profit and loss as per book 9,80,297/- ( by adding provision for tax and fbt)

add :

provision for gratuity 27,456/-
Service Tax Penalty 4,974/-

less :

carry forward depn or business loss which ever is less 11,094/-

__________

taxable income 10,01,633/-

NOW WORKING FOR DEPRECIATION AND BUSINESS LOSSES WHICH EVER IS LESS

Working Of Business Loss & Unabsorbed Deprecitaion

Year Ending 31.03.2006
Business Loss As Per P/L 286479
Depreciation As Per P/L 14288

Year Ending 31.03.2007
Business Loss As Per P/L 1627377
Depreciation As Per P/L 31608

Year Ending 31.03.2008
Net Profit as Per P/L/ A/c 34802
Business Loss or brought forward Depreciation
whichever is less
Bussiness Loss 1913856
(286479+1627377)
Brought Forward Depreciation 45896 (45,896)
(14288+31608)

Brought Forward Depreciation 11,094

Year Ending 31.03.2009

Bussiness Loss 1913856
Brought Forward Depreciation 11094

sir i have written all the working please tell me that mat calculation is correct or not ?

thanks