CA Vasiullah (Vasi) (Audit Executive) (1813 Points)
30 May 2012Please solve my query.
When calculating profit under section 115JB for calculating MAT how the current depreciation should be adjusted.
1. Should the depreciation charged in P&L as per Companies Act be added and then deducted.
or
2. Depreciation charged to P&L be added back and depreciation as per Income Tax Act be deducted to arrive at profit.
Please clarify soon!
MAHESH GARG
(AUDIT EXECUTIVE)
(334 Points)
Replied 30 May 2012
MAT is calculated on book profit and depreciation as per companies act is charged to arrive at book profit for calculation of MAT
Zoheb Hamdule
(Article Trainee)
(39 Points)
Replied 30 May 2012
CAclubindia
