Mat Credit Entitlement Period

The unavailed amount of mat credit entitlement if any should continue to be presented under the head loans advances.

Mat credit entitlement period.

They do so by showing the mat credit as mat credit entitlement to the credit of the income and expenditure amount. In the year of set off of credit the amount of credit availed should be shown as deduction from the provision of taxation on the liabilities side of the balance sheet. If this circumstance does not arise and mat credit stays in the loans and advances column of the company s balance sheet till the end of the specified period after which it is simply written off. The finance bill 2017 proposes to amend section 115jaa of the.

In the assessment year when regular tax becomes payable the difference between the regular. Currently tax credit can be carried forward up to the 10th. Such tax credit shall be carried forward for 15 assessment years immediately succeeding the assessment year in which such credit has become allowable. Unabsorbed mat credit will be allowed to be accumulated subject to the 10 years carry forward limit.

This is with effect from ay 2018 19 prior to which mat could be carried forward only for a period of 10 ays. Providing relief to assessees paying minimum alternate tax mat finance minister arun jaitley proposed to enhance the time limit to claim mat credit from the existing 10 years to 15 years. The asset may be reflected as mat credit entitlement. Suggestion on clause 46 a of finance bill 2017 section 115jaa extension of period of carry forward of mat credit from 10 years to 15 years clarity regarding carry forward and set off of mat credit in cases where the ten year period has expired on or before ay 2016 17 but the fifteen year period has still not expired.