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  • MAT Calculation: Setoff MAT Credits - End Net Tax Payable

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    Goku
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    This document shows the profit and tax calculations for a company over 8 years. It includes calculations for book profit, taxable income, carry forward losses, MAT credit, tax payable, and deferred tax liability. The company has losses in the initial years which are set off against profits in later years. MAT credit is generated when MAT is paid over actual tax and is utilized against tax payable in future years. Deferred tax liability is also calculated each year.

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    Tax Case

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    This document shows the profit and tax calculations for a company over 8 years. It includes calculations for book profit, taxable income, carry forward losses, MAT credit, tax payable, and deferred tax liability. The company has losses in the initial years which are set off against profits in later years. MAT credit is generated when MAT is paid over actual tax and is utilized against tax payable in future years. Deferred tax liability is also calculated each year.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    7 views4 pages

    MAT Calculation: Setoff MAT Credits - End Net Tax Payable

    Uploaded by

    Goku
    This document shows the profit and tax calculations for a company over 8 years. It includes calculations for book profit, taxable income, carry forward losses, MAT credit, tax payable, and deferred tax liability. The company has losses in the initial years which are set off against profits in later years. MAT credit is generated when MAT is paid over actual tax and is utilized against tax payable in future years. Deferred tax liability is also calculated each year.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 4

    Y-0 Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Year - 6 Year - 7

    PBT - Book Profit 100 100 100 100 100 100 100
    Add: Dep SLM 100 100 100 100 100 100 100
    Less: Dep WDV 300 300 150
    Taxable Income Tax Act ==> (100) (100) 50 200 200 200 200
    Carry Forward Loss - Beg - (100) (200) (150) - - -
    Additions to CFL (100) (100) - - - - -
    Set Off - - 50 150 - - -
    Carry Forward Loss - End (100) (200) (150) - - - -

    Profit available for taxation - - - 50.0 200.0 200.0 200.0


    Corporate Tax @ 33% - - - 16.5 66.0 66.0 66.0

    MAT Calculation
    PBT (Book Profits) 100.0 100.0 100.0 100.0 100.0 100.0 100.0
    Tax as per MAT ( @ 19%) 19.0 19.0 19.0 19.0 19.0 19.0 19.0

    Tax Payable 19.0 19.0 19.0 19.0 66.0 66.0 66.0


    MAT paid over tax 19.0 19.0 19.0 2.5 - - -
    MAT Credit - Beg - 19.0 38.0 57.0 59.5 12.5 -
    Addition 19.0 19.0 19.0 2.5 - - -
    Setoff - - - - 47.0 12.5 -
    MAT Credits - End 19.0 38.0 57.0 59.5 12.5 - -
    Net Tax Payable IT Act 19.0 19.0 19.0 19.0 19.0 53.5 66.0

    Deferred Tax Calculation


    Tax as per Books (@ 33%) Comp Act 33 33 33 33 33 33 33

    Deferred Tax Liability


    Opening - 14 28 42 56 70 50
    Additions (DTL) 14 14 14 14 14 (21) (33)
    Closing 14 28 42 56 70 50 17
    18 10
    Year - 8 8

    100 1.34
    50
    accelrated dep
    150
    -
    -
    -
    -

    150.0
    49.5 264

    100.0
    19.0

    49.5 324
    -
    -
    -
    -
    -
    49.5 264

    33 264

    17
    (17) ITE - ITP
    -
    Y-0 Year - 1 Year - 2 Year - 3 Year - 4 Year - 5 Year - 6 Year - 7

    PBT - Book Profit 100 100 100 100 100 100 100
    Add: Dep SLM 100 100 100 100 100 100 100
    Less: Dep WDV 300 300 150
    Taxable Income Tax Act ==> (100) (100) 50 200 200 200 200
    Carry Forward Loss - Beg - (100) (200) (150) - - -
    Additions to CFL (100) (100) - - - - -
    Set Off - - 50 150 - - -
    Carry Forward Loss - End (100) (200) (150) - - - -

    Profit available for taxation - - - 50.0 200.0 200.0 200.0


    Corporate Tax @ 33% - - - 16.5 66.0 66.0 66.0

    MAT Calculation
    PBT (Book Profits) 100.0 100.0 100.0 100.0 100.0 100.0 100.0
    Tax as per MAT ( @ 19%) 19.0 19.0 19.0 19.0 19.0 19.0 19.0

    Tax Payable 19.0 19.0 19.0 19.0 66.0 66.0 66.0


    MAT paid over tax 19.0 19.0 19.0 2.5 - - -
    MAT Credit - Beg - 19.0 38.0 57.0 59.5 12.5 -
    Addition 19.0 19.0 19.0 2.5 - - -
    Setoff - - - - 47.0 12.5 -
    MAT Credits - End 19.0 38.0 57.0 59.5 12.5 - -
    Net Tax Payable IT Act 19.0 19.0 19.0 19.0 19.0 53.5 66.0

    Deferred Tax Calculation


    Tax as per Books (@ 33%) Comp Act 33 33 33 33 33 33 33

    Deferred Tax Liability


    Opening - 14 28 42 56 70 50
    Additions (DTL) 14 14 14 14 14 (21) (33)
    Closing 14 28 42 56 70 50 17
    18 10
    Year - 8 8

    100 1.34
    50
    accelrated dep
    150
    -
    -
    -
    -

    150.0 -
    49.5 264

    100.0
    19.0

    49.5 324
    - 60
    -
    -
    -
    -
    49.5 264

    33 264

    17
    (17) ITE - ITP
    -

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