In case of company where MAT Credit is available, Interest is calculated u/s 234 B & C on which amount, As per IT or MAT
INCOME | TAX | ADV TAX PAID | BALANCE | |
IT | 1000 | 300 | 150 | 150 |
MAT | 800 | 160 | 150 | 10 |
MAT CREDIT UTILISED | 140 | 0 | ||
Deepak Tapse (Accounts Manager - Taxation) (1771 Points)
22 May 2015In case of company where MAT Credit is available, Interest is calculated u/s 234 B & C on which amount, As per IT or MAT
INCOME | TAX | ADV TAX PAID | BALANCE | |
IT | 1000 | 300 | 150 | 150 |
MAT | 800 | 160 | 150 | 10 |
MAT CREDIT UTILISED | 140 | 0 | ||
YOGESH
(STUDENT)
(128 Points)
Replied 29 May 2015
The Interest U/s 234B and 234C should be made on the Tax payable on the Basis of MAT or Income Tax.
As the Tax Payable is higher of MAT or Income Tax, the Interest is chargeable to the Higher of MAT or Income Tax