Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: articles on VAT and GST in India :: cpt :: VAT Audit :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: form 3cd :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: empanelment
 
 
« From the Courts »
 Pr. Commissioner Of Income Tax-21 Vs. Dr. Vandana Gupta
 Commissioner Of Income Tax Vs. M/S Prasidh Leasing Ltd.
  CST vs. Shri Krishna Chaitanya Enterprises (Bombay High Court)
 Danisco India Private Ltd vs. UOI (Delhi High Court)
  Rashtriya Chemicals & Fertilizers Limited vs. CIT (ITAT Mumbai)
 M/S Abhipra Capital Ltd. Vs. Deputy Commissioner Of Income Tax (Investigation)
 Rashtriya Chemicals & Fertilizers Limited vs. CIT (ITAT Mumbai)
  Abicor and Binzel Technoweld Pvt. Ltd vs. UOI (Bombay High Court)
 Abicor and Binzel Technoweld Pvt. Ltd vs. UOI (Bombay High Court)
 CST vs. Shri Krishna Chaitanya Enterprises (Bombay High Court)
 Industrial Infrastructure Development Corporation (Gwalior) M.P. Ltd vs. CIT (Supreme Court)

Tax Tribunal: Banks are not liable to pay minimum alternate tax (MAT)
October, 15th 2010

A leading tax tribunal has said that banks are not liable to pay minimum alternate tax (MAT) since they are governed by the Banking Regulation Act and prepare their accounts differently. The Income Tax Appellate Tribunal (ITAT),Mumbai, which passed an order in the case of Krung Thai Bank, said that MAT provisions come into play only when the accounts are prepared under the Companies Act under the Income-Tax Act.

Gajendra Golchha, a chartered accountant, who appeared for the foreign bank told ET, Going by this order, MAT will not be applicable to insurance, banking and electrical companies. According to the ITAT order on September 30, the provisions of MAT is applicable only when profit and loss accounts are prepared under the provisions of the Companies Act, under schedule VI.

However, the Schedule VI of Companies Act are not applicable to banks as they are exempt under proviso to Section 211 (2) of the Companies Act. The final accounts of banks are to be prepared under the provisions of Banking Regulations Act. Therefore Section 115J B of Income-Tax Act governing provisions of MAT is not applicable to banks.

In this case the bank was a foreign entity operating through a branch in India. It had shown a profit of over `78 lakh but after adjustments the bank has shown a profit of over `94 lakh. After setting off carry forward loses, the bank returned nil income. It is the declaration of nil profit that compelled the I-T department to apply the provisions of MAT. The department had argued before ITAT that there is no specific exclusion for banking companies from the requirement to prepare profit and loss accounts as under Chapter VI of the Companies Act.

ITAT however, held that the departments stand is against the intent of the legislature. ITAT alsocited an earlier judgement on similar grounds given out by a co-ordinate bench in the case of Maharashtra State Electricity Board. ITAT held that the provisions of MAT do not apply in this case and the assessing officer made an error in concluding that income had escaped the tax net.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Sitemap

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions