in case of an company if the Normal tax liability is less than the specified percentage of tax of the book profits(MAT) then the company is required to pay MAT instead of the normal tax liability. As MAT is shown as an asset because we can adjust the future tax liability against MAT, can the advance tax paid during the F.Y. will be eligible to be offset against the MAT liability. If not can we c/f the Advance tax & TDS paid to offset it against the tax liability in the subsequent year if the company is liable to pay tax under normal tax liability.
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Mat liability adjustment against advance-tax payment
Replies (2)
We compute and conclude the Income Tax amount to be paid without considering the advance tax already paid.
similary we compute MAT amount..
be it be MAT or Normal IT amount.. advance tax can be deducted from the total of tax payable and u will need to pay only the remaining
:)
hey u have asked a very good question i must say...bt aparna is rite tht u cn adjust MAT against advance tax as both comes under purview of income tax..if u go by law wht govt wants is tax...if u pay advance tax why wont it be adjusted...
2... ya one can carry forward the advance tax
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