13 Replies
CA Seema Kochar
(CHARTERED ACCOUNTANT)
(636 Points)
Replied 15 February 2010
No, as this tax is levied by state govt ,
so there is no surchagre & edu cess. would be added while calculatig MAVT
CA Seema Kochar
(CHARTERED ACCOUNTANT)
(636 Points)
Replied 15 February 2010
Sorry I had read MAT as MVAT
Amir
(Learner)
(4016 Points)
Replied 15 February 2010
Dear Hari,
Yes Surcharge & education cess is applicable on the rate u/s 115JB i:e MAT..
C.Balaji
(Learner)
(1867 Points)
Replied 15 February 2010
completely agree with Mr.Amir
Surcharge & education cess is applicable - MAT..
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 15 February 2010
Yes the above is correct. However for calculating MAT credit available for set off in future years no credit of surcharge and education cess payable is available.
CA Amit Kumar Khaitan
(Research Analyst)
(360 Points)
Replied 15 February 2010
Mr. Aditya, can u please tell the reason why surcharge and EC are not available as credit?? It is sounding a bit new to me.. no offences
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 15 February 2010
MAT credit is allowable on the excess of MAT payable over Income Tax payable on normal rates. So only MAT credit of tax paid is allowable. Also for computing whether MAT is payable or normal income tax we compare gross MAT payable (i. e. before surcharge & education cess) with normal income tax payable.
It does not make any difference in tax calculation if the rates of surcharge and education cess remain same from year to year. However if surcharge payable in the year of company paying MAT and surcharge not payable in the year when the company is taking MAT credit then there is a difference in MAT paid and credit availed.
CA Amit Kumar Khaitan
(Research Analyst)
(360 Points)
Replied 15 February 2010
do u mean that only the rate mentioned by the slab in the finance bill is the income tax and the surcharge and EC part donot fall within the definition of Income tax??
Amir
(Learner)
(4016 Points)
Replied 18 February 2010
Dear Amitk,
Aditya sir is rite that MAT credit is to be claimed before charging surcharge & education cess......
This thing can be confirmed if u look at ITR 6 where Surchage & Education cess is charged after claiming credit of MAT..................
C.Balaji
(Learner)
(1867 Points)
Replied 19 February 2010
Mr. Amitkk....
Aditya sir and Mr.Amir brother both are rite....
MAT credit is to be claimed before charging surcharge & education cess......
Surchage & Education cess will be charged only after claiming the credit of MAT.......
Hardik
(Audit Assistant)
(38 Points)
Replied 05 September 2011
I also agree with your opinion bt where it is written in the Act or in rules???
Aryan Sharma
(1 Points)
Replied 06 May 2016
What % are surcharge and education cess are applicable while computing mat?
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