Mat Computation Under Ind As

As the book profit based on ind as compliant financial statement is likely to be different from the book profit based on existing indian gaap the central board of direct taxes cbdt constituted a committee in june 2015 for suggesting the framework for computation of minimum alternate tax mat liability under section 115jb for ind as compliant companies in the year of adoption and thereafter.

Mat computation under ind as. As the book profit based on ind as compliant financial statement is likely to be different from the book profit based on existing indian gaap the cbdt constituted a committee in june 2015 for suggesting the framework for computation of mat liability under section 115jb for ind as compliant companies in the year of adoption and thereafter. The tax computed by applying 15 plus surcharge and cess as applicable on book profit is called mat. Therefore the central board of direct taxes cbdt constituted a committee in june 2015 for suggesting the framework for computation of minimum alternate tax mat liability under section 115jb for ind as compliant companies in the year of adoption and thereafter. Mat computation formulae for ind as companies the finance act 2017 provided a separate formulae for computation of book profit for the companies that prepare financial statements under ind as.

Interplay between ind as and income tax accounting under ind as impact on mat guidance under section 115jb and faq specific adjustment as prescribed to be made impact under normal provision of income tax act treatment covered under icds or act follow treatment as per icds or act or binding judicial precedents treatment neither covered by icds. No 133 23 2015 tpl issued a faq titled clarifications on computation of book profit for the purposes of levy of minimum alternate tax mat under section 115jb of the income tax act 1961 for indian accounting standards ind as compliant companies where it answered 14 questions. The committee has given its final report on december 22 2016. Being taxed under mat provisions.

Book profit of the financial year in which the asset is retired disposed realised or otherwise. The cbdt has issued circular no. 24 2017 dated 25th july 2017 in which it has provided clarifications on computation of book profit for the purposes of levy of minimum alternate tax mat under section 115jb of the income tax act 1961 for indian accounting standards ind as compliant companies. Mat is levied at the rate of 9 plus surcharge and cess as applicable in case of a company.

Provisions from bare act. Accordingly mat would be calculated using the profits as per the. The ind as assessment of existence of control over another entity is different from that under regulations such as companies act irda and sebi takeover code.