Devendra (Chartered Accountant) (4775 Points)
20 September 2016Hello Members,
M/s XYZ Ltd. is paying tax as per the MAT provisions. While calculating MAT, interest u/s 234B and C is levied. Whether the interest on MAT u/s 234B and C is to be included in the MAT Credit. If no, then what shall be the accounting treatment for interest paid on MAT u/s 234B and C.
Please guide.
Thank you
Bharath
(C.A,C.S)
(3983 Points)
Replied 20 September 2016
Hi,
Interest is not available as credit. It is a cost to the company.Any interst paid is in the nature of fine or penalty. You should debit the same to P&L under your appropriate head. Some companies have separate GL for Interest whereas some company charge it to rates and taxes. It depends upon your company accounting codes.
Regards
Bharath
Kishan Vishwakarma
(Final Year Articleship)
(73 Points)
Replied 20 September 2016
Devendra
(Chartered Accountant)
(4775 Points)
Replied 20 September 2016
CAclubindia
