The Finance Act, 2017 provided a separate formulae for computation of book profit for the companies that prepare financial statements under Ind AS.
The Finance Act, 2017 provided a separate formulae for computation of book profit for the companies that prepare financial statements under Ind AS. Accordingly, Minimum Alternate Tax (MAT) would be calculated using the profits as per the statement of profit and loss before Other Comprehensive Income (OCI), as the starting point. The Finance Act, 2017 also provides certain adjustments to book profits for MAT computation.
The Central Board of Direct Taxes (CBDT) received a number of queries on various aspects of computation of MAT under Ind AS. These matters were referred to an expert committee. On 25 July 2017, CBDT issued clarifications in the form of Frequently Asked Questions (FAQs) on issues relating to the levy of MAT for Ind AS compliant companies along with the proposed amendment in the IT Act.
This issue of IFRS Notes provides an overview of the following:
To access the text of the CBDT notifications on:
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