Illustration: Calculation of Normal Tax Liability
Illustration: Calculation of Normal Tax Liability
Illustration: Calculation of Normal Tax Liability
ABC (IFSC) Pvt. Ltd.(an IFSC) was set up in a Special Economic Zone in April 1, 2013. It enjoyed 100% deduction
for the first 5 years on normal export profits u/s 10AA, thus accounting for a total of Rs 108 MAT credit till
assessment year 2018-19 as:
2014-15 Rs 100 Rs 9
2015-16 Rs 200 Rs 18
2016-17 Rs 300 Rs 27
2017-18 Rs 200 Rs 18
2018-19 Rs 400 Rs 36
Now,
Thus the tax liability of ABC Pvt Ltd. will be Rs Rs 60 (plus cess as applicable) being higher than the MAT liability.
Tax Liability = Rs 60
Less : MAT credit adjusted (Rs 60 - Rs 27) = Rs 33
Tax Payable = Rs 27
Note : * A domestic Company is taxable at the rate of 25% if, its turnover or gross receipt does not exceed Rs 250
crores in the previous year 2016-17. In this case, it has been assumed that the turnover of Company exceeds Rs 250 in
previous year 2016-17.