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Mat credit

mukesh haseja (senior Audit executive ) (54 Points)

07 September 2012

Dear sir,

Whether Mat credit should be taken before Surcharge & Education cess or after Surcharge & education cess

when our income tax liability is more than Mat Liability and there is also mat credit available of previous year

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3 Replies

vikash rathi (Chartered Accountant) (787 Points)
Replied 07 September 2012

please clarify your doubt........

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Chandrashekar (Chartered Accountant) (32 Points)
Replied 07 September 2012

Originally posted by : mukesh haseja
	Dear sir, Whether Mat credit should be taken before Surcharge & Education cess or after Surcharge & education cess when our income tax liability is more than Mat Liability and there is also mat credit available of previous year

Dear mukesh,

So far as i see it I feel you have this querry because of Income tax form 4. My personal views are that you should take mat credit after surcharge and education cess, because both education cess and surcharge are a form of tax and thus are elegible for mat credit.

But in income tax form its given before surcharge and cess. so far income tax form purpose you have to adjust your figures accordingly and if amount is material you can take the issue with the department..

saurabh jain (Audit Specialist) (271 Points)
Replied 08 September 2012

Originally posted by : Chandrashekar
	Originally posted by : mukesh haseja Dear sir, Whether Mat credit should be taken before Surcharge & Education cess or after Surcharge & education cess when our income tax liability is more than Mat Liability and there is also mat credit available of previous year Dear mukesh, So far as i see it I feel you have this querry because of Income tax form 4. My personal views are that you should take mat credit after surcharge and education cess, because both education cess and surcharge are a form of tax and thus are elegible for mat credit. But in income tax form its given before surcharge and cess. so far income tax form purpose you have to adjust your figures accordingly and if amount is material you can take the issue with the department..