Whether deferred tax asset can be adjusted against MAT credit entitlement
4 Replies
CA SANDESH MAHIPAL
(Practicing in GST and MSME )
(1985 Points)
Replied 26 May 2012
No DTA can not be adjusted with MAT credit because both are different things.
Prateek Agarwal
(Sr. Executive - Finance & Accounts)
(1732 Points)
Replied 26 May 2012
agree with above
Sagar Tilak
(PROPRIETOR)
(396 Points)
Replied 27 May 2012
Deferred Tax is calculated and disclosed in order to comply with the Accounting Standard (AS) -22.
Minimum Alternate Tax is to be computed and paid if applicable as covered u/s 115JB of Income Tax Act.
MAT Credit is to be utilized when the company is liable to pay Income Tax as per normal provisions of Income Tax Act.
Hence even the setting off the DTA with MAT credit is not allowed and it does not make sense to utilize MAT credit in reducing DTA.
CA.kaya
(Chartered accountant)
(3990 Points)
Replied 27 May 2012
no DTA cannot adjusted with MAT....
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