Calculation of mat

CA Smit Shah (B.Com, M.Com, C.A) (759 Points)

27 July 2012  

DEAR FRIENDS

HOW TO CALCULATE UNABSORBED DEPRICIATION OR UNABSORBED BUSINESS LOSS FOR CALCULATION OF MAT?

YEAR WISE BREAK UP OF UNABSORBED DEPRICIATION OR UNABSORBED BUSINESS WILL BE CONSIDERED OR IT WILL BE CALCULATED IN TOTALITY.

I AM ASKING THIS AS I FIND DIFFERENT METHOD IN TWO REFERENCE BOOK.

I AM GIVING EXAMPLE TELL ME WHICH ONE IS RIGHT?

 

 

Treatment -1        
P.Y. Business Loss Depriciation Profit/(Loss) for the year Eligible for MAT Deduction
2008-09 47004 -19645 27359 nil  
2009-10 -89424 -88997 -178421 88997  
2010-11 171544 -146073 25471 nil  
           
  Amount Eligible for Deduction     88997  
           
           
Treatment-2      
P.Y. Business Loss/Profit Depriciation Profit/(Loss) for the year Eligible for MAT Deduction
        Unab. Dep Unab. Loss
2008 47004 -19645 27359 0 0
2009 -89424 -88997 -178421 -88997 -62065
2010 171544 -146073 25471 -88997 -36594
        w.e.is less
  Amount Eligible for Deduction     36594