Impact of Ind AS on Minimum Alternate Tax (MAT)
– By CA Niketa Agarwal
As the book profit based on Ind AS compliant financial statement is likely to be different from the book profit based on existing Indian GAAP, the CBDT constituted a committee in June, 2015 for suggesting the framework for computation of MAT liability under section 115JB for Ind AS compliant companies in the year of adoption and thereafter. On 22nd December, 2016, the Committee submitted its final report after taking into account all the comments/ suggestions received in respect of the first and second interim report submitted on 18th March, 2016 and 5th August, 2016 respectively.
This article discusses the amendments made to section 115JB to incorporate adjustments as mandated by Ind AS.