Hey guys please provide me with solution of the below problem regarding MAT Credit:-
A Co. for the A/Y 11-12 is having MAT Provision Rs. 65,889 & Tax At Normal Provision Rs. 86,211
An Amount of Rs. 48,056 is available with company as MAT Credit of A/Y 2009-10
TDS available with co. Rs. 1,96,462.
As in the case, higher tax becomes payable so Rs.86,211 becomes payable as tax for currrent year.
As TDS Of Rs. 1,96,462 is available so the net amount comes to be refund of Rs.1,10,251.
But as MAT credit of earlier year is available for set off ,the difference between Normal Tax & Tax as per MAT can be set off against MAT Credit.
So the difference i.e Rs.20,322 is added to the amount of refund.
So net refund due becomes 1,10,251+20,322 =Rs.1,30,573
The query relating to the above problem is that whether Amount of Rs.20,322 should be added to amount of refund or not?
or it is available as set off in case of Tax payable only.
CAclubindia
