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Beat the Heat in Summer

2016-04-18T18:22:00.001+05:30

Beat the Heat in Summer

Scorching heat, hot wind and High temperature are here indicating the onset of summer.

High temperatures often lead to dehydration and fatigue. Here are a few tips to help you beat the summer heat.

Remain indoors: If the temperature outside crosses the 38 centigrade mark, remain indoors. Reschedule all your activities to early morning or evening when the temperatures are relatively cooler, also avoid travelling in the afternoon as the temperature and humidity is at its peak.

Cool it down: Bring out the child in you, cool down that scorching heat with smoothies, butter milk and other cool beverages. One must strictly avoid spicy and heavy food during summer

‘CAP’ture the heat: Heat strokes are witnessed usually when there is prolonged exposure to heat and the best way to prevent this wear hats, caps or just simply the umbrella, keep these accessories handy, especially when you are travelling during day time.

Rehydrate: Replenish your thirst regularly either with water, fresh fruit juice, vegetable juice and buttermilk. Consumption of at least 8 glasses of water is recommended during summer. Do not consume alcohol or caffeinated drinks as it can alter body’s temperature control mechanism. .

Consume fresh fruits: Consume fruits like Water Melon, Orange, Papaya, Guava, Pineapple, Grapes, Musk Melon, Mango, Pears, Apple, Fig and Cucumber. These fruits contain high water content and helps replenish the loss of fluids and reduces the heat

Wear light: Wear light, short, loose fitted attire like cotton shirts, pants, trousers and dresses during summer season. Avoid wearing tight fitted attire as it can make you feel stuffy, irritated and sweaty.

Shower twice to thrice a day: Taking a shower twice or thrice a day will not only prevent infection due to excess sweat but it will also keep the body and mind fresh. Prevent hot water baths during summer; instead keep cool by taking cold water showers.

Block that sun: High temperature and heat can darken your skin tone and lead to tanning or sun burns. Apply lotions that have SPF formula that is the Sun Protection Factor. These lotions are easily available at the nearest retail store/chemist. Lotions with SPF 30 or higher are usually advised to beat the tan.

Slow down the exercising: During summer, the body is already profusely sweating due to high temperatures therefore either reduce the duration or the intensity of your exercising during summer, also replenish yourself with 250 ml of water for every twenty minutes of exercising.

You can also switch to alternatives like Yoga, swimming and long walks at dawn and sunset

Take a hike: When the temperature gets too unbearable visit a hill station or cooler areas for a few days with family and friends.

Eat healthy, exercise and sleep well! The holy trinity of good health and glowing skin holds true for the whole year. So along with all the tips above, don’t forget to eat a balanced diet, work out for at least 45 minutes every day and get 7 to 8 hours of sleep.

This blog is only educational in nature.

Thanks,
CA Alpesh Tated.
Always Keep Smiling…
Save a tree. Don't print unless it's really necessary.

The greatest mistake of most of human beings:- "We listen half, understand quarter, think zero, react DOUBLE and remember FOREVER...”

Micchami Dukkadam.....BARAMBAAR KHAMAT KHAMNA

2012-09-20T17:21:00.004+05:30

Micchami Dukkadam.....

BARAMBAAR KHAMAT KHAMNA

Chanchal Man Shararati, Hai bahut Nadaan...
Kabhi Dukhaye Dil kisi ka Kabhi kar de Apmaan...
Kabhi Kar de apmaan lekin Dil Hai Mera Saccha...
Galti Kar deta hai jaise ho koi chhota Baccha...
Kahat Kavi Alpesh, Bade Kshama Veer hai AAP...
Karbaddh Hokar khada hu mai Mujko Karna Maaf...
Micchami Dukkadam.....

Kabhi kabhi pathar k takranay se aati nahi kharash..
kabhi ek zara se baat se insan bikhar jata hai!!
Micchami Dukkadam.....

We take few seconds to hurt someone but we take years to say SORRY. This msg is for everyone whom I have hurted knowingly or unknowingly by my Deeds, Words or Behavior, then I fold my hands, bow my head and ask for forgiveness..

MICCHAMI DUKKADAM !!

Jeevan Yatra mei chalte chalte, swarth, moh, gusse ya agyantawash hui bhulo k liye, sacche swach hriday se

Micchami Dukkadam.....

Days turn to months...& month to years...with passing of time...knowingly or unknowingly...if I have hurt you by my action, words, deeds or thoughts...

I am sorry....

Micchami Dukkadam.....

bolta chalta.....garden ma ramta.....coffee pita.... picture jota....facebook ni comment ma....email ya sms ma....panchayat karta....team india ni 4-0 ni har ma....koi ni surprise party ma....monday to sunday ma....january thi december ma....koi maan dukh lagyo hoi to
MICCHAMI DUKKADAM….

True Regards,
CA Alpesh Tated.
Always Keep Smiling…
Save a tree. Don't print unless it's really necessary.
The greatest mistake of most of human beings:- "We listen half, understand quarter, think zero, react DOUBLE and remember FOREVER...”

Patience, Persistence and Perspiration Are THE Key Success Factors

2011-02-24T22:29:00.000+05:30

Anger comes alone, but Takes away all the Good qualities from us.

Patience too comes alone, but brings all Good qualities to us.

Why Patience, Persistence and Perspiration Are THE Key Success Factors

You want to be successful, to achieve financial freedom, right? And you want it as quickly as you can especially if, like many people, you're struggling with debts and commitments, wondering whether your job is safe and wishing you had a little to spare on luxuries and relaxation. You have labored for years and now it would be good to feel the benefits of all that hard work.

Most people who seek financial freedom assume it will come quickly and easily. They look at people who are financially successful today but forget all the time before today when that person was working to build their financially free future. They see someone who became successful 'overnight'.

This inaccurate view lets many people assume financial success -- or success in any other area of life -- can be theirs tomorrow, or at latest next month. But as Napoleon Hill said, you need to develop the three key success factors of patience, persistence and perspiration, which he described as an unbeatable combination for success.

I Want It All -- And I Want It NOW!

We live in a world where instant gratification has become the norm. Young people are especially guilty of expecting their every whim and desire to be immediately satisfied. The media has persuaded them that if they can't have that latest designer item right now, their life will never be the same again. Financial institutions have also played their part, making credit easily accessible to both the credit-worthy and those likely to struggle to maintain their over-extended lifestyle. Patience used to be a virtue, but no longer, it seems.

In Think and Grow Rich Napoleon Hill wrote of many people whose financial success came after a long period of waiting. People such as Edwin C Barnes, who took a lowly job working for Thomas Edison while he patiently waited for the opportunity to become a business associate of Edison's. Similarly Henry Ford waited patiently while his engineers labored to design the V-8 motor, which went on to make him a large amount of money. Without patience neither would have achieved success.

Hill also praises the value of patience in decision-making, explaining that successful people, once a decision is made, are slow to change their minds. Sticking with the decision you've made, rather than blowing with the wind gives you time to let things work through so you can properly assess the effects of your actions. If you impatiently change your plans part-way through, you'll never know what might have happened.

Again, and Again...

Persistence is the art of sticking at things until they're done, rather than giving up when things don't immediately go your way.

In sales the key factor to success is putting yourself in front of enough people who choose to buy what you're selling. If you've had a string of people choosing not to buy, putting yourself in front of the next person can become difficult. You tell yourself there's no point, you'll only be disappointed again. Or maybe you wonder whether your product is worth buying. Negatives pile up on one another creating a mental mountain you have to climb to that next prospect.

The only way through this is to just get on and do it: be persistent. Put a smile on your face and pick up that phone, knock on the next door, whatever. The very next person you speak to could be the one who unlocks your success. But if you don't persistent you may walk away rather than speaking to them.

Persistence is particularly important when you're involved in new areas, or where you're less sure of yourself. Here those negative thoughts and influences find it even easier to get a hold. Overcome lack of persistence by forming a habit. Stop worrying about how things will turn out; just get started. If things don't go your way it's an excellent learning opportunity, and when they do, those positive feelings will reinforce the benefits of persistence.

10% Inspiration, 90% Perspiration

Behind every successful person there's a lot of hard work that often goes unnoticed, especially by their critics. Thomas Edison failed many times before he produced a working light bulb. Successful sports players spend hours practicing; getting their moves just right so when they perform in a contest it looks effortless. Reality television shows that while talent is needed, it's hard work that really makes the difference between success and failure.

Anyone who has already achieved financial freedom has done this through consistent hard work. They identified a burning desire, used creative imagination to develop an organized plan, and put the plan into action -- day after day after day -- until their 'instant' success finally began to materialize. Early achievements were recognized as milestones not the end of the journey. Setbacks were seen as opportunities to learn: to adapt plans and reconsider strategies, not as a reason to give up.

Hard work: physical, mental or both, is the only sure way to achieve lasting financial freedom. If you desire success in life you must be willing to pay the price by developing and applying the 3 key success factors of patience, persistence and perspiration.

Thanks,

CA Alpesh Tated.

Always Keep Smiling…

Save a tree. Don't print unless it's really necessary.

The greatest mistake of most of human beings:- "We listen half, understand quarter, think zero, react DOUBLE and remember FOREVER...”

This Mirror Life

2011-02-24T22:21:00.001+05:30

The good you find in others, is in you too.

The faults you find in others, are your faults as well.

After all, to recognize something you must know it.

The possibilities you see in others, are possible for you as well.

The beauty you see around you, is your beauty.

The world around you is a reflection, a mirror showing you the person you are.

To change your world, you must change yourself.

To blame and complain will only make matters worse.

Whatever you care about, is your responsibility.

What you see in others, shows you yourself.

See the best in others, and you will be your best.

Give to others, and you give to yourself.

Appreciate beauty, and you will be beautiful.

Admire creativity, and you will be creative.

Love, and you will be loved.

Seek to understand, and you will be understood.

Listen, and your voice will be heard.

Teach, and you will learn.

Show your best face to the mirror, and you'll be happy with the face looking back at you.

Thanks,
CA Alpesh Tated.

Always Keep Smiling…
Save a tree. Don't print unless it's really necessary.
The greatest mistake of most of human beings:- "We listen half, understand quarter, think zero, react DOUBLE and remember FOREVER...”

Sukhkarta Dukhharta Lyrics (Ganpati ji)

2011-02-24T22:20:00.000+05:30

Sukhkarta Dukhharta Lyrics

Sukhkarta Dukhharta
Varta vighnachi
Noorvi poorvi prem krupya jayachi
Sarwangi sundar utishendu rachi
Kanthi jhalke maad mukhta padhanchi

Jai dev Jai dev
Jai mangal murti
Darshan marte maan kamana purti
Jai dev Jai dev

Ratnakhachit Phara Tujh Gaurikumara
Chandanaachi Uti Kumkum ke shara
Hire jadit Mukut Shobhato Bara
Runjhunati Nupure Charani Ghagriya

Jai dev Jai dev
Jai mangal murti
Darshan marte maan kamana purti
Jai dev Jai dev

Lambodar Pitaambar Phanivar vandana
Saral Sond Vakratunda Trinayana
Das Ramacha Vat Pahe Sadna
Sankati Pavave Nirvani Rakshave Survar vandana

Jai dev jai dev
Jai mangal murti
Darshan marte maan kamana purti
Jai dev jai dev

Shendur laal chadhaayo achchhaa gajamukha ko
Dondil laal biraaje sut gaurihar ko
Haath liye gud ladduu saaii survar ko
Mahimaa kahe na jaay laagat huun pad ko

Jai jai jai jai jai
Jai jai jii ganaraaj vidyaasukhadaataa
Dhany tumhaaro darshan meraa mann ramataa
jai dev jai dev

Astha sidhi dasi sankat ko bairi
Vighan vinashan mangal murat adhikari
Koti suraj prakash aise chabi teri
Gandasthal Madmastak jhool shashi behari

Jai jai jai jai jai
Jai jai jii ganaraaj vidyaasukhadaataa
Dhany tumhaaro darshan meraa mat ramataa
jai dev jai dev

Bhaavabhagat se koi sharaNaagat aave
Santati sampatti sabahii bharapuur paave
Aise tum mahaaraaj moko ati bhaave
Gosaaviinandan nishidin gun gaave

Jai jai jai jai jai
Jai jai jii ganaraaj vidyaasukhadaataa
Dhany tumhaaro darshan meraa mat ramataa
jai dev jai dev

Thanks,
CA Alpesh Tated.

Always Keep Smiling…
Save a tree. Don't print unless it's really necessary.
The greatest mistake of most of human beings:- "We listen half, understand quarter, think zero, react DOUBLE and remember FOREVER...”

Lessons in Logic - Time Pass

2011-02-24T18:33:00.000+05:30

I was born intelligent -
Education ruined me.

.............................................................

Practice makes perfect.....
But nobody's perfect......
So why practice?

................................................................

If it's true that we are here to help others,
Then what exactly are the others here for?

..............................................................

Since light travels faster than sound,
People appear bright until you hear them speak.

............................................................

How come "abbreviated" is such a long word?

................................................................

Money is not everything.
There's Mastercard & Visa.

.............................................................
If your father is a poor man,
It is your fate but,
If your father-in-law is a poor man,
It's your stupidity.

........................................................

Behind every successful man, there is a woman
And behind every unsuccessful man, there are two woman.

............................................................

Every man should marry.
After all, happiness is not the only thing in Life.

.......................................................

The wise never marry.
And when they marry they become otherwise.

........................................................

Success is a relative term.
It brings so many relatives.

........................................................

Never put off the work till tomorrow
What you can put off today.

................................................................

"Your future depends on your dreams"
So go to sleep

.............................................................

There should be a better way to start a day
Than waking up every morning

...........................................................

"Hard work never killed anybody"
But why take the risk

............................................................

"Work fascinates me"
I can look at it for hours

.............................................................

God made relatives;
Thank God we can choose our friends.

..........................................................

The more you learn, the more you know,
The more you know, the more you forget
The more you forget, the less you know
So.. Why learn.

........................................................

A bus station is where a bus stops.

A train station is where a train stops.

On my desk, I have a work station....
What more can I say........

Thanks,
CA Alpesh Tated.

Always Keep Smiling…
Save a tree. Don't print unless it's really necessary.
The greatest mistake of most of human beings:- "We listen half, understand quarter, think zero, react DOUBLE and remember FOREVER...”

Dedicated to Parents

2011-02-24T18:05:00.000+05:30

The three words....... "FROM THE HEART" contains twelve letters which can be rearranged to form the words MOTHER and FATHER.
Is it a coincidence? Who knows, but it's a lovely thought just the same. -Author Unknown

Thanks,
CA Alpesh Tated.
Always Keep Smiling…
Save a tree. Don't print unless it's really necessary.
The greatest mistake of most of human beings:- "We listen half, understand quarter, think zero, react DOUBLE and remember FOREVER...”

Quote - Unquote

2011-02-24T18:02:00.000+05:30

1) A problem can not be solve with the same consciousness that created it. -Albert Einstein.

2) If one day we were put to exchange all our troubles across the table, after few moments each one would SILENTLY take his own & leave.

3) Try to use words that heals, not wounds. We are responsible for fight or peace, think and change the attitude!

4) Workers play football, Managers play tennis & CEOs play golf,
"Higher u go d ladder, d ball gets smaller n u need a better "VISION".........

5) Be nice to people on your way up because you'll need them on your way down.........

6) Truth about human tongue- it takes 3years to learn how to use it but it takes life time to learn when & where to use it ......

7) "Success & Excuse do not walk together, If you want excuse forget about success & If you want success then do not give excuse"

8) Reflection can't be seen in boiling water. Same way, TRUTH can't be seen in a state of ANGER! So, Analyse b4 u Finalise...!!!

Thanks,
CA Alpesh Tated.

Always Keep Smiling…
Save a tree. Don't print unless it's really necessary.
The greatest mistake of most of human beings:- "We listen half, understand quarter, think zero, react DOUBLE and remember FOREVER...”

Contradictory Proverbs

2011-02-24T13:13:00.000+05:30

Contradictory Proverbs

Every Action has an equal and an opposite

reaction. Similarly, every proverb has an equal

and an opposite proverb! There always exists

two sides of the same coin. You be the judge..

All good things come to those who wait.

BUT Time and tide wait for no man.

The pen is mightier than the sword.

BUT Actions speak louder than words.

Wise men think alike.

BUT Fools seldom differ.

The best things in life are free things..

BUT There’s no such thing as a free lunch.

Slow and steady wins the race.

BUT Time waits for no man.

Look before you leap.

BUT Strike while the iron is hot.

Do it well, or not at all.

BUT Half a loaf is better than none.

Birds of a feather flock together.

BUT Opposites attract.

Don’t cross your bridges before you come to them.

BUT Forewarned is forearmed.

Doubt is the beginning of wisdom.

BUT Faith will move mountains.

Great starts make great finishes.

BUT It ain’t over ‘till it’s over.

Practice makes perfect.

BUT All work and no play makes Jack a dull boy.

Silence is golden.

BUT The squeaky wheel gets the grease.

You’re never too old to learn.

BUT You can’t teach an old dog new tricks

What’s good for the goose is good for the gander.

BUT One man’s food is another man’s poison.

Absence makes the heart grow fonder.

BUT Out of sight, out of mind.

Too many cooks spoil the broth.

BUT Many hands make light work.

Hold fast to the words of your ancestors.

BUT Wise men make proverbs and fools repeat them.

Thanks.

CA Alpesh Tated

Always Keep Smiling…

Save a tree. Don't print unless it's really necessary.

The greatest mistake of most of human beings:- "We listen half, understand quarter, think zero, react DOUBLE and remember FOREVER...”

Practical - Quick Management

2011-02-24T00:09:00.001+05:30

Ek din ek kutta jungle main raasta kho gaya. Tabhi usne dekha ek sher uskii taraf aa raha hai. Kutte ki saans sookh gayi. "Aaj to kaam tamaam mera!" usne socha. Phir usne saamane kuchh sookhi haddiyan padi dekhi. Woh aate hue sher ki taraf peeth kar ke baith gaya aur ek sookhi hadii ko choosane laga aur zor zor se bolne laga, "wah! Sher ko khaane ka maza hi kuchh aur hai. Ek aur mil jaaye to poori daawat ho jayegi!" Aur usne zor se dakaar mara. Is bar sher sakate mein aa gayaa. Usne socha "ye kutta to sher ka shikar karta hai! Jaan bacha kar bhago!" Aur sher wahan se champat ho gaya .

Ped par baitha ek Bandar yeh sab tamasha dekh raha tha. Usne socha yeh mauka achha hai sher ko sari kahani bata deta hoon - sher se dosti ho jayegi aur usase zindagi bhar ke liye jaan ka khatra dur ho jayega. Woh phataphat sher ke pichhe bhaga. Kutte ne Bandar ko jaate hue dekh liya aur samajh gaya ki koi locha hai. Udhar Bandar ne sher ko sab bata diya ki kaise kutte ne use bewakoof banaya hai. Sher zor se dahada, "chal mere sath abhi uski leela khatam karta hu" aur Bandar ko apani peeth par baitha kar sher kutte ki taraf lapka.

Can u imagine the quick management by the DOG…………………

Kutte ne sher ko aate dekha to ek bar phir uskii taraf peeth karke baith gaya aur zor zor se bolne laga, "Is Bandar ko bhej ke 1 ghanta ho gaya saala ek sher phaansa kar nahi la sakta!"

Apne aju baju bhi aise bandar aur sher hote hai... pehchanna sikho...

Thanks.

CA Alpesh Tated

Always Keep Smiling…

Save a tree. Don't print unless it's really necessary.

The greatest mistake of most of human beings:- "We listen half, understand quarter, think zero, react DOUBLE and remember FOREVER...”

Minimum Alternate Tax (MAT)

2011-02-23T23:00:00.000+05:30

Minimum Alternate Tax (MAT)

Minimum Alternate Tax (MAT) is payable by companies. The MAT rate for A.Y. 11-12 is 18%. Though there has been a consistent demand from companies from various sectors for its removal, the Government continues with this tax.

The article covers MAT in full detail. It also discusses about accounting aspects of MAT. MAT under Direct Tax Code has also been discussed in the article.

Why was MAT introduced?

The concept of Minimum Alternate Tax (MAT) was introduced in the direct tax system to make sure that companies having large profits and declaring substantial dividends to shareholders but not paying tax to the Govt by taking advantage of the various incentives and exemptions provided in the Income-tax Act, pay a fixed percentage of book profit as minimum alternate tax. Though there has been a consistent demand from companies from various sectors for its removal, the Government continues with this tax. Looking at the proposed provisions of DTC, it appears that the Government is very clear that it wants to continue with MAT.

Non Applicability

The provisions of MAT contained in section 115JB would not apply to the following incomes accruing or arising on or after 1st April 2005 –

1. Income from any business carried on by an entrepreneur in a SEZ (10AA);

2. Income from the services rendered by an entrepreneur from a unit in a SEZ (10AA);

3. Income of a Developer from the development of a SEZ. (80IAB)

Rate of MAT

It is provided that in case of company (domestic or foreign) , if the income-tax payable on the total income computed under the Income-tax Act, is less than 18% of its book profit, such book profit shall be deemed to be the total income of the assessee and the tax payable by the assessee on such total income shall be the amount of income-tax at the rate of 18% (add surcharge, if applicable, i.e. 7.5% for domestic companies and 2.5% for foreign companies, where the total income exceeds Rs.1 crore) and Education cess @2% and secondary and higher education cess@1% shall be added on the aggregate of income-tax and surcharge.

The rate at which MAT is charged has been increasing since its inception. Following table shows the rates of MAT since it was introduced for the first time:-

Assessment Year	Rate of MAT (% of Book Profit)	Surcharge (if book profit exceeds Rs 1 crore)
2011-12	18	7.5
2010-11	15	10
2007-10	10	10
2001-07	7.5	10

Computation of Book Profit as per 115JB

The book profit shall mean the net profit as shown in the profit and loss account prepared in accordance with the provisions of Part II and III of Schedule VI to the Companies Act, 1956 as adjusted by certain additions/deductions as specified.

Net profit as per profit& loss account		xxx
ADD:
Income tax paid or payable**	xx
The amount of deferred tax and provision there of	xx
Depreciation charged to P/L account	xx
Proposed dividend or dividend paid.	xx
Amount carried to any reserve (Other than33AC).	xx
Provision made for diminution in value of assets.	xx
The amount of any expenditure relatable to any income u/s 10(except 10(38)) or 11or 12.	xx
Provision made for liabilities (Other than ascertained).	xx
Provision made for losses of Subsidiary company	xx	xxx
LESS:
Amount withdrawn from any Reserve or provision.	xx
The amount of any income relatable to any income u/s 10(except 10(38)) or 11or 12.	xx
Depreciation as per P&L a/c Excluding depreciation relatable to revaluation of assets.	xx
Amounts withdrawn from revaluation reserves and credited to p&l account, but it does not exceed the amount of depreciation.	xx
The amount of loss B/F or unabsorbed depreciation Whichever less, as per book of accounts.	xx
The amount of deferred tax, if any such amount is credited to the profit and loss account.	xx	(xxx)
BOOK PROFIT		xxx

**

[It may be noted that income-tax includes -

· Dividend distribution tax / tax on distributed income;

· Interest;

· Surcharge;

· Education cess; and

· Secondary and higher education cess]

MAT Credit entitlement (Section 115 JAA)

This section provides that where tax is paid in any assessment year in relation to the deemed income under section 115JB(1), the excess of tax so paid over and above the tax payable under the other provisions of the Income-tax Act, will be allowed as tax credit in the subsequent years.

The tax credit is, therefore, the difference between the tax paid under section 115JB (1) and the tax payable on the total income computed in accordance with the other provisions of the Act.

The tax credit shall be allowed to be set off in a year in which tax becomes payable on the total income computed in accordance with provisions of the Act other than section 115JB.

This tax credit is allowed to be carried forward for ten assessment years succeeding the assessment year in which the credit became allowable.

Such credit is allowed to be set off against the tax payable on the total income in an assessment year in which the tax is computed in accordance with the provisions of the Act, other than 115JB, to the extent of excess of such tax payable over the tax payable on book profits in that year.

A Numerical Illustration

Assessment Year

Normal Tax Liability

Tax Liability u/s 115JB

Tax Payable (Higher of 2 & 3)

MAT Credit Entitlement

Credit u/s 115JAA utilized

Credit availability for carry forward

(1)

(2)

(3)

(4)

(5)

(6)

(7)

2009-10

100

190

190

90

0

90

2010-11

170

200

200

30

0

120

2011-12

200

150

200

0

50

70

2012-13

260

170

260

0

70

0

Accounting for MAT

MAT credit entitlement will be treated as an asset and the accounting will be done by crediting the Profit & loss A/c, if there is a virtual certainty that the company will be able to recover the MAT credit Entitlement in future limited period. It will be disclosed under Loans and Advances. In the year of adjustment full provision shall be made for Tax Liability, and in the Balance Sheet the Provision for Tax shall be shown net off MAT credit Entitlement.

Journal entries (AY-2009-10)

1) Profit and loss A/c………. Dr 190

To Provision for Tax 190

2) MAT Credit Entitlement A/c……… Dr 90

To Profit and loss A/c 90

Journal entries (AY-2011-12)

1) Profit and loss A/c………. Dr 200

To Provision for Tax 200

The MAT credit entitlement will be shown as deduction from Provision for Tax in the Balance Sheet

Provision for Tax 200

Less: – MAT credit entitlement (50)

Net 150

Does Advance tax apply to MAT?

Yes it is compulsory to pay advance tax in the case of MAT as mentioned in CBDT Circular No.13/2001 dated 09/11/2001. Also Karnataka High Court in the case of Jindal Thermal Power has held that advance tax is payable under MAT. The companies liable to pay MAT are liable for the payment of advance tax and failing to do so will attract interest u/s 234B and 234C of the Act.

Other Points -

CONTROVERSIAL ISSUES IN THE COMPUTATION OF THE BOOK PROFIT AND ADJUSTMENTS TO BE MADE UNDER EXPLANATION TO SECTION 115JB

Additions:

1. The amount of income-tax paid or payable, and the provision therefor

Under this item, only income-tax paid or payable and the amount of provision made towards income-tax liability shall be added. Item such as wealth tax shall not be added as they are not to be treated as part of income-tax. Controversy may arise about the treatment of interest, penalty, dividend tax payable under Income-tax Act as regards adding them to book profit on the ground that they do not form part of income-tax as per the Act.

2. The amount carried to any reserves, by whatever name called

Attention is invited to Circular No.550 dated 1st January, 1990 vide Appendix V

3. An amount or amounts set aside to provisions meant for meeting liabilities, other than ascertained liabilities

The explanation to section 115JB requires adding back of the provision made in the books for meeting unascertained liabilities.

The word "ascertain" as per the Webster's II New Riverside University Dictionary means, "to make certain". Thus ascertained liability means a liability which is certain or known.

As per AS 4, Contingencies and events occurring after the balance sheet date, the term "contingency" is defined as,

"A condition or situation, the ultimate outcome of which, gain or loss will be known or determined only on the occurrence, or non occurrence of one or more uncertain future events."

It can therefore be said that ascertained liability is one, which is not a contingent liability. The chartered accountant may decide the items that fall under this clause on the above said lines. For better understanding, the treatment of certain specific items are explained as under:

Provision for bad and doubtful debts, Provision for Diminution in the value of investments, provision against non-performing assets:

Clause(c) to the explanation deals only with the amounts, which are set aside as provision(s) for meeting liabilities. Whereas, the above mentioned provisions are made in the books in compliance with the accounting principles and as mandated by other Statutes towards anticipated losses. As such, these items may not fall under this clause. This view is supported by the decision of the Calcutta Tribunal in the case ofSutlej Cotton Mills Limited v. ACIT (45 ITD 22). However, Madras High Court has given a contrary view inBeardsell Limited v. DCIT (244 ITR 256), in the context of erstwhile section 115J.

Therefore, the chartered accountant may exercise his professional judgement on the treatment of the above, while computing the book profits for the purpose of this section.

Provision for leave encashment / gratuity:

AS 15 requires an appropriate charge to be made in the profit and loss account for retirement benefits due to the employee on actuarial basis. The Supreme Court in Bharat Earth Movers Limited (BEML) v. CIT (112 Taxman 61) held that

"if the liability has definitely arisen in the accounting year the deduction should be allowed even though the liability may have to be quantified and discharged in a future date. What should be certain is the incurring of the liability and it should also be capable of being estimated with reasonable certainty though the actual quantification may not be possible. If these requirements are satisfied the liability is not a contingent one."

In view of the decision of the Apex Court, it may be said that the provision for meeting the above said liabilities are ascertained liabilities and do not fall under this clause.

4. The amount or amounts of expenditure relatable to any income to which section 10 or section 10A or section 10B or section 11 or section 12 apply.

It is given in the Explanation that expenditure relating to any income to which section 10 or 10A or 10B or 11 or 12 of the Act applies, shall be added back to the net profit for the purpose of computation of book profit. The accountant shall ascertain the quantum of such expenditure debited to the profit and loss account by examining the manner in which the company earns such exempt income. It is significant to note that section 10C has not been included in both additions and deductions.

Reductions:

1. The amount withdrawn from any reserves or provisions if any such amount is credited to be profit and loss account.

Where assets are revalued in the books and depreciation is claimed on the enhanced value of the asset with a corresponding withdrawal from the revaluation reserve account, the chartered accountant may keep in mind the following decisions of the Tribunal rendered in the context of erstwhile section 115J.

SRF Limited v. ACIT- 47 ITD 504 (Del) - Amount drawn from revaluation reserve has to be excluded from net profit for the computation of book profit under section 115J.

Punjab Fibres Limited v. DCIT- 72 ITD 68 (Del) - Depreciation provided on the revalued figures cannot be adjusted in determining the book profit.

Vijay Spinning Mills Ltd v. DCIT - 73 ITD 344 (Hyd) - Depreciation shall be considered only on the historical cost and not on the revalued cost for the purpose of determining the book profit.

2. The amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account.

The amount of brought forward loss or unabsorbed depreciation whichever is less as per the books of account shall be reduced from the net profit. It is also clarified by way of explanation to the said clause that the loss shall not include depreciation. It means that the depreciation and loss before depreciation are to be compared to determine the quantum of deduction under this clause.

For instance, in the case of a company, if the brought forward loss is Rs.50 lakhs which includes unabsorbed depreciation of Rs.45 lakhs, the amount that shall go to reduce the net profit is the brought forward loss of Rs.5 lakhs as it is less than the unabsorbed depreciation. Therefore, book profit shall be computed only by reducing Rs.5 lakhs.

A question may arise as to whether the loss or depreciation to be taken is cumulative over the years or on a year to year basis. As explained in the Circular No 495 dated 22/09/1987 issued by the Central Board of Direct Taxes (CBDT) in the context of erstwhile section 115J of the Act it may be said that the figure has to be taken as cumulative over the years. The same exercise has to be done each year. This view was also upheld by the Madhya Pradesh High Court in CIT v. Shree Synthetics Limited (233 ITR 333).

There may be situation where a company has only one item i.e. either brought forward loss or unabsorbed depreciation. In such a case, a doubt may arise as to the quantum of deduction under this clause. To explain this, in the example given above, if the entire brought forward loss of Rs.50 lakhs represents unabsorbed depreciation only, the assessee is compelled to compare nil brought forward loss with unabsorbed depreciation of Rs.50 lakhs and no reduction shall be allowed in determination of book profit.

3. The amount of profits eligible for deduction under section 80HHC, computed under clause (a) or clause (b) or clause (c) of sub-section (3) or sub-section (3A), as the case may be, of that section, and subject to the conditions specified in that section.

4. The amount of profits eligible for deduction under section 80HHE computed under sub-section (3) or sub-section (3A), as the case may be, of that section, and subject to the conditions specified in that section.

5. The amount of profits eligible for deduction under section 80HHF computed under sub-section (3) of that section and subject to the conditions specified in that section.

While determining the book profit under section 115JB, the amount of profits eligible for deduction under section 80HHC or 80HHE or 80HHF computed under the relevant provisions of the said sections shall be considered. In arriving at the profit eligible under the above sections reference may be made to the Guidance Note on Audit under section 80HHB and 80HHC.

IMPORTANT DECISIONS RELEVANT FOR THE PURPOSE OF COMPUTATION OF BOOK PROFIT UNDER SECTION 115JB

CASE LAWS	DECISION
SECTION 115J Sutlej Cotton Mills Ltd v. ACIT 45 ITD 22 (Cal.)	Where there is no allegation of fraud or misrepresentation but only a difference of opinion has to be questioned whether a particular amount should be properly shown in the profit and loss or in the balance sheet, the provisions of sec.115J do not empower the AO to disturb the profits as shown by the assessee. Capital gain: Capital gain cannot form part of book profit for the reason that it affects the capital structure of the company and does not affect the working results.
Travancore Chemicals Manufacturing Co Ltd v. DCIT 46 ITD 203 Cochin	As prior period adjustment was necessary in terms of para 2(b) of Part II of the schedule VI and the Standard issued by the ICAI also defines prior period items as Material Charges or Credits which arise in the current year as a result of error, the prior period items have to be considered in arriving at the book profit. Refund of tax not credited to profit and loss account cannot be added to book profit.
Bombay Tyres International Ltd v. DCIT 51 ITD 339 (Bom.)	So long as the change was bona fide as per the legal and accounting requirement, the arrears pertain to a provision of an ascertained and known liability and therefore did not constitute reserve.
National Rayon Corporation Ltd v. DCIT 51 ITD 61 (Bom.)	Provisions made for liability relating to earlier years which had accrued in the earlier year but not provided could be deducted in computing the profits for the purpose of section 115J.
SRF Limited v. ACIT 47 ITD 504 (Del.)	Amount drawn from revaluation reserve has to be excluded from the net profit for computation of book profit under section 115J.
PSI Data System Ltd v. DCIT 69 ITD 7 (Cochin)	Amount written off or retained by way of depreciation is included in the definition of provision and accordingly the excess amount provided in the earlier years would qualify for reduction under explanation I to section 115J(1A).
Shree Sajjan Mills Ltd v. CIT 156 ITR 585 SC	Provision made on actuarial valuation is an ascertained liability.
CIT v. Apollo Tyres Ltd And CIT v. Krishna Oil Extraction Ltd (MP) 237 ITR 706 (Ker.)	Arrears of depreciation not provided in the books in earlier years cannot be provided in the current year.
Modern Woollen Ltd v. DCIT 47 ITD 154 (Bom.)	Depreciation can be provided in books of account at rates higher than those specified in Schedule XIV to the Companies Act

Role of Chartered Accountant

Section 115JB, inserted by the Finance Act, 2000 has cast a responsibility on the chartered accountant to certify that the book profit has been computed in accordance with the provisions of the Income-tax Act. He has also to certify the income-tax payable by the company.

MAT under Direct Tax Code

The model adopted for MAT under existing law is based on book-profit. However, there is a marked shift in this respect as it is proposed to levy tax on the value of gross assets. While this will certainly achieve the objective of charging tax from the companies not paying the tax at all but it will also penalize the companies which are sloth. Certainly, clause 2(3) of DTC is hitting two birds with a single stone.

The DTC narrates the methodology to be followed for arriving at the value of GA as under:-

“Value of gross assets” will be the aggregate of the value of gross block of fixed assets of the company, the value of capital works in progress of the company, the book value of all other assets of the company, as on the last day of the relevant financial year, as reduced by the accumulated depreciation on the value of the gross block of the fixed assets and the debit balance of the profit and loss account if included in the book value of other assets.

The rate of MAT will be 0.25 per cent of the value of gross assets in the case of banking companies and 2 per cent of the value of gross assets in the case of all other companies.

Under the Code, MAT will be a final tax. Hence, it will not be allowed to be carried forward for claiming tax credit in subsequent years.

Effect of the new provision

The provisions of taxing Companies by MAT under Direct Tax Code shall have the following effect:

Positive:-

1. Efficiency with which fund is utilized will improve.

2. The tax collection will go up.

Adverse:-

1. This will create industrial disparity as capital intensive industries viz Iron & Steel, Cement etc have to pay more than the labour intensive viz software industry. Thus it will reduce investments in Infrastructure and will dissuade investments.

2. By not allowing credit of tax paid by way of minimum alternate tax, this tax is in the nature of wealth tax and not on income at all;

3. This type of tax will clearly be an additional burden to loss making companies and will make their survival more difficult;

4. In case of long gestation projects, this tax type of tax will further increase the cost of projects and might even make the projects unviable.

5. It will result in double taxation as group financing is common, viz holding company having stake in there subsidiaries and granting them loan as well, and so both holding & subsidiaries have to pay tax on their gross assets. This will affect the financing of less reputed companies as they are not able to procure finance directly.

Conclusion

Actress Kareena Kapoor made herself famous and glamorous by becoming slim and achieving the zero figure fat in “Tashan”. MAT proposes the corporate sector to be slim and beautiful. It has been successful so far to burn the fat and make the sloth run; the new scheme will also do the same but in a different manner.

Thanks ......

CA Alpesh Tated

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Assessment Year	Normal Tax Liability	Tax Liability u/s 115JB	Tax Payable (Higher of 2 & 3)	MAT Credit Entitlement	Credit u/s 115JAA utilized	Credit availability for carry forward
(1)	(2)	(3)	(4)	(5)	(6)	(7)
2009-10	100	190	190	90	0	90
2010-11	170	200	200	30	0	120
2011-12	200	150	200	0	50	70
2012-13	260	170	260	0	70	0