Mohd. Hammad (CA Article ) (103 Points)
22 June 2011Dear All,
My question is
WHEN TO BOOK MAT CREDIT IN BALANCE SHEET?
1) at the time of making provision for MAT (when finalizing financial statements as at 31st March)
or
2) at the time of payment of MAT (i.e. before filing the ITR in Sept)
&
proper accounting presentation & disclosure
Regards,
Hammad
CA,CMA,CS Karan Gogia
(Employed)
(230 Points)
Replied 22 June 2011
BOOK MAT CREDIT IN BALANCE SHEET
at the time of making provision for MAT (when finalizing financial statements as at 31st March)....
as it shud be incorporated in the accounts os the year to which ot relates.
Mohd. Hammad
(CA Article )
(103 Points)
Replied 22 June 2011
Thanks again Sir...
Kindly also confirm the given below accounting enteries:
For MAT provision
Profit & Loss account Dr
To Provision for MAT
(with the amount of MAT + Interest u/s 234B & 234C)
For MAT Credit
MAT Credit Entitlement Dr
To Profit & Loss Account
(with the amount of MAT only)
Kindiest request that support your answer with reference
Best Regards,
Hammad
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