Company Total Income 15,000,000

Tax @ 30% 4,500,000

Surcharge 450,000
Education Cess @ 1% 49,500
H&SEC @ 2% 99,000
Previous Year Tax Profit 115 JB Profit
2007-08 300,000 2,000,000
2008-09 700,000 1,000,000
2009-10 1,000,000 800,000

Computaion of Tax Liability

Particulars Previous Year
2007-08 2008-09 2009-10
Total Income 300,000 700,000 1,000,000
Book Profit 2,000,000 1,000,000 800,000
Tax on Total Income 90,000 210,000 300,000
Tax on Book Profit 300,000 150,000 120,000
Tax Payable Heigher of abo 300,000 210,000 300,000
Add: Surcharge (TI less than 0 0 0
Tax Payable including Surch 300,000 210,000 300,000
Add: Education Cess @ 2% 6,000 4,200 6,000
Add: S&HE Cess @ 1% 3,000 2,100 3,000
Total Tax Payable 309,000 216,300 309,000
Less: MAT Credit 0 61,800 154,500
Net Tax Payable 309,000 154,500 154,500

MAT Credit Availabe 2007-08 2008-09 2009-10

Tax Payable under Book Prof 309,000 154,500 123,600
Tax payable on Tax Profit 92,700 216,300 309,000
MAT Credit Available 216,300 0 0

MAT Credit Availment 2007-08 2008-09 2009-10

MAT credit Available upto PY 216,300 154,500

Tax on Total Income + SC+EC+SHEC 216,300 309,000

Tax on Book Profit + SC+EC+SHEC 154,500 123,600
Difference = MAT for Current PY 61,800 0

MAT credit C/F 154,500 0