Mat Treatment Under Ind As

For instance 1 face value per ccd 1 000.

Mat treatment 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. Illustrations have been given for a better clarity on practical application the provisions. The cbdt received a number of queries on various aspects of computation of mat under ind as. ø a lower interest expense for determining profit loss for the year compared to the contractual liability payout as also interest hitherto recognised under the pre ind as framework.

These matters were referred to an expert committee. In many cases there have been significant regulatory challenges such as power and infrastructure companies potentially meeting the criteria for nbfcs. This has brought certain level of clarity in mat computation within ind as framework. Hence the transition amount will be adjusted 1 5 th each year in 2017 18 to 2021 22.

Ca ahmad faraz jahangir has examined the amended provisions of mat under 115jb of income tax act 1961 as applicable to companies following ind as for preparation of their financial statements. Mat treatment under ind as is taxing of capital adjustment unintended introduction. 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. Book profit of the financial year in which the asset is retired disposed realised or otherwise.

Medication assisted treatment mat is the use of medications in combination with counseling and behavioral therapies to provide a whole patient approach to the treatment of substance use disorders. Being taxed under mat provisions. 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. Ind as or the existing indian gaap the amendments to section 115jb as discussed above are being made.

A much needed amendment to align mat computation with ind as in the year of adoption and thereafter is introduced in finance act 2017. Medications used in mat are approved by the food and drug administration fda and mat programs are clinically driven and tailored to meet each patient s needs. Contractual interest rate 12 amounting to interest payout o f. Then the transition amount will be adjusted under mat equally in five consecutive years starting from 2017 18.

On 25 july 2017 cbdt issued clarifications in the form of frequently asked questions faqs 1 on issues relating to the levy of mat for ind as compliant companies along with the proposed amendment in. Total ccd amount 1 00 000.