() P Isability (w) Proposed dividend () Losses of subsidiary (1) Depreciation 45.000 2,00.000 2,00.000 70,000 6,65.000 12,05.000 L: Satutory deductions Amt withdrawn from Reserve (1) Exempted (if included) (1) Depreciation (excluding depreciation on revaluation assets) (iv) B/F loss or unabsorbed dep. Profits eligible under section 80HHC, SOHHE, SOHHF NIL NIL 70,000 1.00.000 NIL 1.70,000 Book Profits 10,35.000 far liability ander MAT Tae 1855 on Book Profits NIL (Book Profits Rs. 10.35.000) 1.91,475 Mit Surcharge (total Income does not exceed 1 crore) Tur and surcharge 1.91.475 Education cess 25 of Tax and surcharge 3,830 Secondary and Higher Education cess (SHEC) (es of Tax and surcharge) 1.915 5.745 Tat as per MAT provisions 1.97.220 Ultimate Tax liability for Assessment Year 2012-13 (A) Tax liability as per Normal Provisions *2.11.665 (B) Tax liability as per MAT (Sec. 115 JB) 1.97.220 A or B, whichever is higher Therefore, ultimate tax liability = 22.11.665 Rounded off to 2.11.670. ILLUSTRATION 5. Bharat Ltd. a domestic Co., provides you following P. and L. Ne for computation of tax liability for Assessment Year 2012-13 3 To Opening stock 40,000 By Sales 70,00.000 To Purchases 18,35.000 By Closing stock 1.00.000 o Direct wages 8,00,000 To Freight inward 10,000 To GP.Cd 44.15.000 71,00,000 71.00.000 N 17 44.15.000 5.000 2.000 Co Salaries General Exp Sales Exp "O M.D Remuneration o Director's sitting fees o Income tax Excise Penalty 5,00,000 By G.P. Wd 3,00,000 By Dividend from Indian Company 2.00,000 By Bad debts recovered 5.00.000 50,000 3,00.000 1.10.000