Mat Credit Disclosure Under Ind As

B the amount of mat credit would be equal to the excess of mat over normal income tax for the assessment year for which.

Mat credit disclosure under ind as. As different accounting treatments have been suggested under previous gaap and ind as for certain transactions the book profit under mat may change. Contain additional presentation and disclosure requirements which may be applicable to banks non banking financial company and insurance companies. A a company which has paid mat would be allowed credit in respect thereof. Icai is established under the chartered accountants act 1949 act no.

A tax credit scheme is introduced by which mat paid can be carried forward for set off against regular tax payable during the subsequent fifteen years period subject to certain conditions as under when a company pays tax under mat the tax credit earned by it shall be an amount which is the difference between the amount payable under mat and. Disclosures 103 8 ind as 108 operating segments 132 9 ind as 109 financial instruments 144 10 ind as 110 consolidated financial statements 185 11 ind as 111 joint arrangements 200 12 ind as 112 disclosure of interests in other entities 210 13 ind as 113 fair value measurement 224 14 ind as 114. Our publication on illustrative ind as financial statements presents model financial statements prepared under ind as. Though there is a positive impact of mat credit due to extension of mat set off availability from 10 years to 15 years the companies need to make careful choices of first time adoption ind as options to minimize a negative mat impact.

Icai the institute of chartered accountants of india set up by an act of parliament. Book profit of the financial year in which the asset is retired disposed realised or otherwise. 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. Ind as or the existing indian gaap the amendments to section 115jb as discussed above are being made.

7 ind as 107 financial instruments. 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. The salient features of mat credit under section 115jaa as applicable in respect of tax paid under sections 115ja and 115jb are as below.