Mat Credit Utilisation Rules

The cag has reviewed 182 cases in 19 states and found that in some cases there was none or minimal set off that could be claimed but the a o.

Mat credit utilisation rules. However applicable mat 18 5 of rs 8 lac rs. Further whether mat credit is to be utilised in immediate previous year in which tax amt as per other provision exceeds the mat or it is optional for the assessee to choose the previous year in next 10 years for utilisation of credit. Allowed a huge amount and in some cases where set off could. 1 lakh the tax liability as per the normal provisions for fy 2019 20 is rs.

10 lakh while that as per the. Mat liability excluding cess and surcharge 15 on rs 18 40 000 will come to rs. All companies that are liable to pay mat have to furnish a mat report as prescribed in form 29b. Such tax credit shall be carried forward for 15 assessment years immediately succeeding the assessment year in which such credit has become allowable.

The maximum amount of mat credit that you can claim cannot exceed the difference between the normal tax liability and the mat liability in the year for which the mat credit is being availed. 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. The amount of tax credit so determined shall be allowed to be carried forward and set off. This is with effect from ay 2018 19 prior to which mat could be carried forward only for a period of 10 ays.

8 52 000 plus cess as applicable being higher than the mat liability. This excess rs 28 000 can be carried forward and set off against regular tax payable in future. In other words mat credit will be allowed only in that previous year in which tax payable on the total income as per normal provisions of the income tax act is more than tax payable under section 115jb and it shall be allowed to the extent of the following. If a company has mat credit of rs.

3 2006 which amended section 115jaa provision dealing with mat credit explained the rationale for enabling utilisation of mat credit against tax payable under other provisions the relevant extracts are as follows. So excess tax payable will be rs 1 48 000 rs. 219 could be held applicable even to mat credit. No credit will be allowed in respect of mat paid in any assessment year prior to 2006 07.

As credit for advance tax is allowed to the person who makes payment of such tax similarly set off of mat credit should be allowed only to that company which pays mat. Thus the tax liability of sm energy pvt. A domestic company is taxable at the rate of 25 if its turnover or gross receipt does.