Jwalit D Sheth (Audit Assistant) (58 Points)
15 March 2012Respected Professionals,
My client is a Pvt Ltd Co and falls under the purview of Sec 115JB. We have rental income and gets credited to P&L a/c and while preparing the computation we disallow the same and consider it under the head House Propety. But while calculating MAT U/s 115JB, can we disallow the same(rental income) from the Book Profit so arrived??
Please assist me for the above referred matter to the earliest
With Regards,
Jwalit Sheth
Sultan Mohiuddin
(Practicing Chartered Accountant)
(56 Points)
Replied 15 March 2012
MAT calculation u/s 115JB is to be done on "Total Income" and not just on "business income".
SO you will have to disallow it first but will have to add that amout under the head HP,which you would do even if the 115JB is not applicable.
Sonam Bidasaria
(CA)
(770 Points)
Replied 15 March 2012
The adjustment provided in arriving book profit are exhaustive in nature. That means only those nine additions and seven deductions are permissible. Anything that is not covered in those addditions and deductions, will not be adjusted. One xnnot go beyond to that 16 adjustments.
Hence, House Property Income cannot be deducted from the Net profit to arrive at Book Profit.
Jwalit D Sheth
(Audit Assistant)
(58 Points)
Replied 16 March 2012
@ Sultan : I didn't get you and @ CA Sonam : thanks for sharing the knowledge
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