Mat credit
Devender Chauhan
(Querist) 01 September 2011
This query is : Resolved
A person have balance of MAT Credit of previous years, & he want to set off this credit while calculating the tax liability of AY 2011-12.
While calculating the tax weather the person first should calculate the tax liability including cess & then deduct the MAT credit
OR
Should he first calculate the tax (excluding cess) & then adjust the MAT credit & then calculate the cess liability on balance amount.
According to me the first option should be followed but when I entered the data in Webtel software then the software followed the second option. The second optiion will reduce the cess liability of the payee & I think it is not correct.
Kindly advise..........
The question was also posted on caclubindia but don't get any proper reply...
the link of the same is:
http://www.caclubindia.com/forum/mat-credit-165061.asp
prabhakar singh
(Expert) 02 September 2011
Here in my feeling unless Mr. comes,chances are least to have a proper answer.
