New Delhi, April 28 (IANS) The government on Thursday invited suggestions and comments on the committee report on computation of book profit for levy of MAT (minimum alternate tax).
“The stake holders and general public are requested to bring out issues that may be submitted by May 10, 2016 at the email addresses [email protected] or by post,” the finance ministry said in a statement.
The Committee on MAT-Ind AS (Indian Accounting Standards) was constituted in June 2015, to suggest the framework for computation of book profit for the purposes of levy of MAT. It was headed by retired Indian Revenue Service officer M.P. Lohia.
After consultations with the corporate affairs ministry, the committee submitted its report on March 18 this year, which has been put in the public domain at www.incometaxindia.gov.in.
Among its suggestions are that no further adjustments are required to be made to the net profits (excluding net other comprehensive income) of Ind AS compliant companies other than those already specified under section 115JB.
The report says that the net other comprehensive income includes certain items that will permanently be recorded in reserves and hence never be reclassified to the statement of profit and loss account or included in the computation of book profits.
“The Committee recommends that these items should be included in book profits for MAT purposes at an appropriate point of time,” the report says.
The companies will switch to the new Indian Accounting Standards from 2016-17.
The committee also deliberated the impact of first time adoption of Ind AS.
“The accounting policies that an entity uses in its opening Ind AS balance sheet at the time of first time adoption may differ from those that it previously used in its Indian GAAP financial statements,” it said.