MAT - Amount set aside to provision made for meeting liabili

[Ramesh Rangani]

Dear All,

Can you please give examples of following liabilities for MAT purpose:

Amount or amounts set aside to provisions made for meeting liabilities, other than ascertained liabilities.

Thanks and regards,
Ramesh

AI Summary

Unascertained Liabilities Must Be Added to Book Profits for MAT as per Explanation 1 of Section 115JB. A participant in a discussion forum inquired about examples of liabilities relevant to the Minimum Alternate Tax (MAT), specifically those set aside for meeting liabilities other than ascertained ones. A respondent clarified that liabilities which are unascertained or contingent fall into this category. Provisions made for unforeseen liabilities that are not finalized or ascertainable are included. According to Explanation 1 of section 115JB, such provisions should be added to the book profits for MAT purposes.