Hello 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
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
Interactive Media Pvt Ltd.
New Delhi
CA Inter
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Arvindkumar Maniar & Co.
Rajkot
CA
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