14th September 2011
Dear Members
| I require your advise in respect of arriving at the amount for availing MAT credit. Kindly advise which amount | |||||||||
| should be taken into account for calculating difference between IT and MAT (whether before charging Cess | |||||||||
| or after charging Cess). For better understanding I am giving below the two workings. | |||||||||
| Taxable Income as per IT Memo | 3919757 | Book Profit as per P&L a/c | 6106981 | ||||||
| Tax @ 30% | 1175927 | MAT @ 18% | 1099257 | ||||||
| Cess @ 2% | 23519 | Cess @ 2% | 21985 | ||||||
| HSE Cess @ 1% | 11759 | HSE Cess @ 1% | 10993 | ||||||
| Income Tax as per IT Memo | 1211205 | Minimum Alternate Tax | 1132235 | ||||||
| Working No.1 | |||||||||
| Normal Tax Payable (as per workings computed above) | 1211205 | (includes cess) | |||||||
| Less : Minimum Alternate Tax Payable on Book Profits | 1132235 | (includes cess) | |||||||
| MAT credit available for adjustment | 78970 | ||||||||
| Working No.2 | |||||||||
| Normal Tax Payable (as per workings computed above) | 1175927 | (excluding cess) | |||||||
| Less : Minimum Alternate Tax Payable on Book Profits | 1099257 | (excluding cess) | |||||||
| MAT credit available for adjustment | 76670 | ||||||||
with regards
Muralidharan
CAclubindia
