If the books of accounts prepared as per schedule VI shows a loss, do we need to do the computation of book profit according to Sec. 115JB?
13 Replies
C.A SHASHANK GOYAL
(Chartered Accountant)
(362 Points)
Replied 18 October 2011
Hi , section 115JB is applicable to every company irrespective of its status or profits , so it is 100% applicable .
praveen
(Chartered Accountant)
(6971 Points)
Replied 18 October 2011
Ya it is applicable . YOu have to see whether there is book profit or not.
Suraj S
(Audit Executive)
(335 Points)
Replied 18 October 2011
Gaurav,
115JB is applicale to every companies. Hence you have to calculate the book profit. But if the book shows a loss then, there will be no tax liability on the assessee.
Ashish M
(Chartered Accountant)
(2731 Points)
Replied 18 October 2011
Yes.., we need to calculate the profits as per 115JB taking book profits as the base and making additions/deletions therefrom provided in Explanation -1 to Sec.115JB. If after making such additions/deletions, their is net loss, then no MAT.!!!
nupur
(employee)
(112 Points)
Replied 18 October 2011
MAT is applicable to all companies and is payable on Book profit , if any . Therefore if Book Profit is loss then MAT is not applicable
CS Rajveer Rai, Gurgaon
(CS)
(646 Points)
Replied 18 October 2011
Tax to be paid by Company is
Tax calculated under normal provision of Income Tax Act
or
15% of book profit calculated as per sec.115JB
whichever is higher
so every Company comes under perview of sec. 115JB
mukesh garg
(article)
(28 Points)
Replied 18 October 2011
yes and now mat rate is 18% for A.Y. 2011-12 and 18.5% for A.Y. 2012-13
CA SANJAY GARG
( Chartered Accountant)
(150 Points)
Replied 21 October 2011
yes Mat will be applicable First all of all take profit or loss as per schedule VI & than make additions or deletions now u as per prov 115jb will get profit or loss for mat purpose If there is loss than pay tax as per normal prov of income tax act & if there is profit than mat will be calculated
18% of book profits calculated as per 115jb (for a.y 2011-12) as increased by surcharge(if any) & Cess
Tax payable will be higher of mat tax & normal prov of income tax act............
(rate posted by cs rajveer above has been changed)
Murali
(CA Final Student)
(37 Points)
Replied 11 September 2012
Hi Friends,
STPI company also applicable under MAT? IF yes, previous losses can carry forward or not?
Please confirm once
Murali
(CA Final Student)
(37 Points)
Replied 11 September 2012
STPI previous losses can be carry forward or not.
Murali
(CA Final Student)
(37 Points)
Replied 17 September 2012
Hi Friends, STPI company also applicable under MAT? IF yes, previous STPI losses can carry forward or not? Please confirm once
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