MAT Treatment

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Dear Experts,

                       I want to know that how we can show MAT effect in the books of accounts. and how we can utilize MAT entitlement in this current year. please reply...

Vikram Singh

AI Summary

Guidance on Reflecting MAT in Financial Accounts and Utilizing MAT Credit: Chartered Accountant Explains Key Steps An individual inquired about reflecting Minimum Alternate Tax (MAT) effects in financial accounts and utilizing MAT entitlement within the current year. A Chartered Accountant advised that MAT credit is shown as a recoverable amount and as a negative provision under MAT credit entitlement in the profit and loss statement. The individual further asked about using MAT credit from previous years listed under assets. The accountant explained that if the normal tax liability exceeds the current year's MAT, the difference can be offset using carried forward MAT credit, provided it is sufficient.