yashsr (CA) (2285 Points)
14 July 2012Hello,
A Pvt Ltd. which has about Rs.75000 of business loss carried forward from the past 2 years made a profit of about Rs.35000 in the year ended 31/3/12. Now, can this profit be set-off against this loss? What about MAT provisions? Will the Company have to pay any tax(MAT) even though the profit this year is less than the loss carried fwd till date?
Prakshal M. Shah
(CA & M.Com)
(69 Points)
Replied 14 July 2012
Dear ,
Yes, u can set-off current year income with previous year loss.
As per Income tax u r nt required to pay tax because u have C/f Losses bt as per MAT u vl be required to pay tax on your profit of Rs. 35,000/- after considering Bus. Loss or Unabsorbed Dep. Loss as per companies act Whichever is lower.
if ur bus. loss or unabsorbed dep. loss as per companies act which ever is less is more than Rs. 35,000/- dn u r not required to pay tax .
Thx.
yashsr
(CA)
(2285 Points)
Replied 14 July 2012
I'm slightly confused. The Company in question does not have any fixed asset. Hence the question of Depreciation does not arise.
Business Loss(total of last 2 years): Rs.75000
Current Year's Business Income: Rs.40000
Now please tell me if any tax is payable under MAT.
CAclubindia
