Gur mrng everyone,
There is one company by name SMP Soft Solutions (P) Ltd which is eligible for exemption of its profits u/s 10A and its other source of income is interest on fixed deposits. The tax liability as per the normal provisions of the act is less than the MAT which is calculated u/s 115JB and consequently the assessee is eligible for MAT credit. While calculating the MAT, the Net profit as per p & l a/c after tax expense is considered and provision for income tax shall be added back to the net profit while determining MAT.
My query is MAT Credit is the difference between MAT Payable and the tax liability as per normal provisions...so wat shall be d amount that to be shown under current tax while preparing d profit & loss a/c as per schedule VI as the MAT is calculated after considering the tax expense.
CAclubindia
