MAT u/s 115JB
K.K.VISWESWARA RAO
(Querist) 27 April 2011
This query is : Resolved
Dear Friends
Please clarify Private or Public limited Company is required to compute Book Profit u/s 115JB of the I.T.Act even though there is no Book Profit.
Example
Other Income - NIL
Ag Income - 6,00,000
Less : Expenses
( Including Ag Expenses)- 3,00,000
=======
Net Profit as per P&L A/c 3,00,000
=======
The Company has not computed MAT as the profit is exempt u/s 10 of the I.T.Act but the AO is asking for compute the Book Profit by claiming exemption and submit the Audit Report in Form 29B.
If Book Profit is calculated by claiming exemption as per Explanation- 1 of Section 115JB. The Company is required to get Report from the Auditor.
Please let me know exact situation to get the Audit Report in Form 29B.
Thanks in Advance
K.K.VISWESWARA RAO
Tax Advocate.
soumitra basu
(Expert) 30 April 2011
You need not have to pay any tax on book profit since it has been specifically mentioned that income under section 10 is exempt from payment of MAT.
Anil Kumar-Advocate
(Expert) 30 April 2011
There is no doubt that the Assessee is not required to pay tax as they are eligible to take exemption u.s.10 the Act, however,you have to oblige the AO by furnishing statement of account duly audited by a qualified accountant i.e.CA. In fact the a/c should be audited before the last cut off date(may be 30th.sept of the respective year) so that the A.O. should not be allowed to impose penalty. Other wise if you produce the audited report duly signed after due date- you may put your assessee under clutches of the AO.
