Urgent - clarification on mat

Well

MAT Credit not applicable to you

As The Tax payable under normal provisions of IT Act is more than MAT payable

you have to pay Rs 12,11,205 as tax, No MAT payable, no credit carried forward

MAT Cedit will be allowed only if you are required to PAY higher tax as per MAT calculation

It will be including cess amount i.e. 78970

Mr Ashish Go through his post carefully

No credit applicable to him

@ Prakash

I think Murlidaran is asking about MAT Credit available as per Section 115JAA i.e the amount he can set off against MAT credit already available with him. So he can adjust to the extent of difference between normal tax payable and MAT payable as per section 115JB

Check once again

Agree with Prakash.

Where the income tax payable on the total income of a company, as computed under the Act in respect of any prevoius year, is less than 18.5% of its book profits, then total income of the company shall be deemed to be equal to the book profits and the tax payable by such company shall be deemed to be equal to 18.5% of the book profit.

In your case, tax payable is not less than 18.5% of the book profits

I hope its not the credit available with him

He is asking to carried forward current year difference as MAT credit 

Well only Mr. Murlidharan can clarify whether he is asking about to utilise the credit available with him or to carry forward the MAT credit.

But I appreciate your views and all the best for your future

Thanq Asish, wishing you same 

Mat  is applicable only when normal tax is lower that mat Tax U/s115JB

here there is no question of Mat credit because our noml tax is more

Regard

Rajesh h Gupta

Dear Murlidharan.

Your first query : MAT credit is always calculated by including education cess. 

One golden rule. Any type of credit  in income tax shall be calculated after surcharge and education cess.

MAT credit is available only when tax on book profit > tax on total income. 

MAT credit = Tax on book profit minus tax on total income.

This credit can be carried forward for 10 years.

MAT credit can be adjusted only when tax on total income > tax on book profit. But minimum MAT has to be paid.

E.g. 

MAT credit of earlier years are 10 L

Tax on Total Income 25 L

Tax on book profit 19 L

Tax payable 25 L

Less :             6 L

Tax payable 19L

Balance of 4 L can be adjusted in next year

Thanks

kaushal

https://taxbykk.blogspot.com/

Therefore assuming that you have MAT credit already available with you, you will get the relief of Rs. 78970.

Sourav

Dear Members

Extremely thankful for all your replies. I have not put forward my query properly. The company already have MAT entitlement / credit. Out of the same we wish to sett off (section 115JAA) some amount during the current year. My doubt is which amount could be availed as set off Whether Rs.78,970 or Rs.76670/-. Please inform

Thanking you in advance

with regards

Muralidharan

Amount Including Cess i.e Rs 78,970