raja (business) 11 March 2013

Tax after ots with bank

bank liability on books is 6 crore.( due to loss of 13 crores in the business because of faliure of one client.) if we settle with bank for 3 crores. 3 crores can be treated as profit? or it can be adjusted with previous losses. if it can be adjusted, do we have to pay mat? what loss can be offset with profit?

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3 Replies

Rama chary Rachakonda (Secunderabad/Highcourt practice watsapp no.9989324294 ) 11 March 2013

Bank liability as per the books 6 crores as per your version. Then how com it can reduce 3 crores. And remaining 3 crores is can be still outstanding due. How come it comes into profit. ?

CA SANKAR (PRACTING CHARTERED ACCOUNTANT ) 17 March 2013

I am not getting full details. Elaborate the situation.

raja (business) 20 March 2013

we have taken loan from bank for 6 crores. and because of loss in business could not pay back. cases are filed in drt etc. we have propsed bank to come to settlement and hopeful to settle for 3 crores. if we can settle for 3 cr, balance payable i.e. 3 cr will be treated as profit?

please note,

ours is pvt ltd co. carry fwd loss in books is 7 cr. it can be adjusted with previous losses. if it can be adjusted, do we have to pay mat? what loss can be offset with profit?