MAT CREDIT

prithwish sengupta (Querist) 13 December 2009 This query is : Resolved
I HAVE 2 QUESTION
1) WILL SURCHARGE BE APPLICABLE ON MAT?
2) I HAVE MAT TAX LIABILITY OF RS 45009, I HAVE PAID ADVANCE TAX 100000 AND HAVE TDS OF RS 49667 FOR THE YEAR.
NOW CAN I TAKE CREDIT OF (100000+49667)=149667 AGANIST MY MAT LIABILITY AND CLAIM REFUND OF 104658 OR I HAVE TO PAY 45009 AND CAN TAKE REFUND OF 149667 FOR THE YEAR??
RELEVANT CASE LAW IF ANY.

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Vineet (Expert) 13 December 2009
1. Yes, Surcharge @10% is payable on MAT if the income chargeable u/s 115JB exceeds Rs 1 Crore in case of domestic company and @2.5% in case of other companies.

2. MAT is only a manner of taxing companies whose total income is considerably reduced vis a vis book profits by virtue of various provisions of tax. Once the tax liability is determined under normal provisions or MAT, credit for Advance Tax and TDS is allowed as in normal course. Under the given facts, you are eligible for refund.