Go Ad-Free on CAclubindia with Daily Mobile Updates. Subscribe Now!

Accounting of mat

Arpita (Works as an Employee) (143 Points)

15 September 2013

Can any body guide me how can do accounting entries for MAT in companies books of accounts in current year as well as next year while taking credit?

Thanks in advance.

Reply
Follow
Share

1 Replies

Sumit Grover (Chartered Accountant ) (3652 Points)
Replied 15 September 2013

Let us take an example to understand d same-- Tax as per normal provisions-1 lac Tax as per MAT provisions- 1.5 lacs So, accounting entry will be as follows: Tax expense a/c dr. 100000 MAT credit A/c dr. 50000 Provision for tax cr. 150000 Suppose, in subsequent year Tax as per normal provisions-1.2 lac Tax as per MAT provisions- 1 lacs tax expense a/c dr. 120000 Provision for tax cr. 100000 MAT credit cr. 20000

2 Like