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Shree Om Transport Pvt Ltd started its operations in Aug 2011 i.e. FY 2011-12.
• It had a PBDT of Rs 2068235.00
• Depreciation as per Companies Act – Rs 50674.00
• Depreciation as per Income Tax Act – Rs 1734015.00
• Tax payable as per normal provisions is Rs 103274.00 [(2068235.00 – 1734015.00)*30.9%] as PBDT is considered only Depreciation as per Income Tax Act is deducted
• Calculation of DTL
o Diff in depreciation – Rs 1683341.00 (Rs. 1734015.00 – Rs. 50674.00)
o Total Timing difference – Rs 1683341.00
o So, DTL created – Rs 520150.00
o DTL actually created by passing a journal entry as
Deferred Tax A/c (Indirect Exp - P/L) Dr Rs 520150.00
To DTL (Current Liab - Current Liab) Rs. 520150.00
• As said earlier, the Shree Om Transport Pvt Ltd had a PBDT of Rs 2068235.00
• MAT Calculation :
o PBDT – Rs 2068235.00
o Less : DTL Provision – Rs 520150.00
o Book Profit for MAT – Rs 1548085.00
o So, tax @19.055% - Rs 294988.00 say Rs 295000.00
o Current tax provided by passing a journal entry as
Income Tax A/c (Indirect Exp - P/L) Dr Rs 295000.00
To Provision for Tax (MAT) for AY 12-13 (Provision) Rs 295000.00
• As the Tax payable is more under MAT, assessee paid tax of Rs 326500.00 along with interest.
• Now here the MAT Entitlement is Rs 223226.00 (326500.00 - 103274.00)
• But, no entry was passed in that year for MAT Entitlement.
• Is it correct to pass entry as under
o MAT Entitlement FY 2011-12 (Loans & Adv-B/S) Dr Rs223226.00
To MAT Credit (Indirect Income-P/L)Rs 223226.00
• Now my question is that,
o Was the working for the year correct?
o If anything is wrong can we correct the mistake in the current year i.e. FY 2012-13
o How to pass entry relating to MAT entitlement in FY 2012-13 or it is required to be made in FY 2011-12 itself
o We have filed Annual Returns with RoC. Is it mandatory to revise the filing post correction? If yes how can it be done? What is time period? |
