Friends
A Pvt. Ltd. Co. Which is Paying tax Under Section 115JB.
In That Company In Last Year
Year 2009-10 - Income Book Profit - 500000
- There Was Business Loss Carried Forward of Past Years Rs. - 200000
14 Replies
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 29 May 2010
Lower of unabsorbed depreciation and book loss is allowed as a deduction for the purpose of calculating MAT.
Jagdish Bhalia
(Practicing CA)
(453 Points)
Replied 29 May 2010
Unabsorbed Depreciation as per books and
Broughtforward business loss as per books , which ever is less will be deduct from the adjusted book profit.
In your case you have already adjusted business loss from the book profit. Now you cannot adjust Unabsorbed depreciation from the book profit.
MAT will be calculated on Rs. 3 Lakhs.
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27186 Points)
Replied 29 May 2010
| Originally posted by : Jagdish Bhalia | ||
 |
Unabsorbed Depreciation as per books and Broughtforward business loss as per books , which ever is less will be deduct from the adjusted book profit. In your case you have already adjusted business loss from the book profit. Now you cannot adjust Unabsorbed depreciation from the book profit. MAT will be calculated on Rs. 3 Lakhs. |
 |
Then Should I Carry Forward Unabsorbed Depreciation For Subsequent Years to Set Off.
Or It Become Irrelevant to Setoff Now.
Jagdish Bhalia
(Practicing CA)
(453 Points)
Replied 29 May 2010
You can carry forward the business loss for MAT purpose only.
Because in Income tax Brought forward business loss and unabsorbed depreciation will be differ from books. While calculating the total Income as per income tax act, unabosbed depreciation as per Income tax act will be considered.
I think ur doubt is clear.
Ramil (CA,L.L.B.)
(Taxation)
(147 Points)
Replied 29 May 2010
dear ayush ,
as per sec 115jb of income tax act,
Lower of (as per company's book)
a)Business loss or
b)unabsorbed depreciation
shall be deducted .
So far as ur query relates to carry forward of unabsorbed depre. as per books , so it can be carried fo
forward and next year if co. pays mat then again lower concept be applicable.
In case of mat we are nowhere concerned with income tax sections becoz sec115JB is a self
contained section. mat tax has to be calculated with its governing provs.
IF any further query , u may ask ....
bye
pramod kumar singh
(student)
(27 Points)
Replied 17 June 2010
in case after adjustment of B/F unabsored depreciation or business loss position is Book loss then company is liable to pay MAT Plz Help.
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 17 June 2010
If book profits calculated as per section 115JB is also a loss then MAT will not be payable.
ca4change
(Forgiver)
(54 Points)
Replied 06 July 2010
Is MAT -Minimum Alternate Tax applicable to the POWER generation companies..i.e.Sec.115JB
CA Sachin D Jain
(FCA, CS, DISA (ICAI))
(1474 Points)
Replied 12 September 2011
Dear All,
One company has already adjusted lesser of unabsorbed depreciation and business loss as per books under MAT, last year i.e. FY 09-10.
But still, there are carried forward losses in the form of Debit balance of profit and loss account. Now, in FY 10-11,
1. Should the company again make backward calculation to check the figure of lower of unabsorbed depreciation and business loss, to claim lesser of the two from current year calculation of MAT.
Or 2. No deduction on account of lower of unabsorbed depreciation and loss will be allowed in FY 10-11, as the Company has already taken the benefit in FY 09-10.
Please clarify.
CA Gyati Gupta
(In Practice)
(8427 Points)
Replied 27 September 2015
I am still in doubt, all the business losses have been set off , now we are left with unabsorbed depreciation only so shall i deduct it for the purpose of book profit u/s 115J ?
CA Ayush Agarwal
(Kolkata-Pune-Mumbai)
(27186 Points)
Replied 28 September 2015
For 115JB, Lower of Unabsobed depreciation or Carried forward Loss can be set off
GOUTAM NANDI
(Accountant)
(22 Points)
Replied 25 October 2017
One Company has no any Unabsorbed Depreciation in previous years, but has business Loss. In this current year The company has been arised as profit. In this case business loss adjusted in current year profit, so no taxable income arises. Can the company claim business loss in MAT calculation without any unabsorbed Depreciation (which is lower)?
Please clarify.
Naval Garg
(Associate Manager)
(22 Points)
Replied 17 January 2018
Can you please tell the order of set off? I mean to say there is no doubt that 2 lakh will be adjusted bu 2 lakh has to be reduced from unabsorber depreciation or brought forward loss? If it is adjusted from unabsorbed depreciation than in the next year we will have 1lakh unabsorbed depreciation and 2 lakh brought forward loss. So, can we again take the benefit of Depreciation as MAT does not define order of set off.
Read more at: https://www.caclubindia.com/forum/mat-unabsorbed-depreciation-85210.asp
ANKIT GUPTA
(CA)
(22 Points)
Replied 03 September 2019
If we have only Brought Fwd Unabsorbed Dep. Will it be reduced from Book Profits to calculate MAT.
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