Computation of book profits by Ind AS compliant companies for levy of MAT

1) Introduction

The provisions of Section 115JB provide for levy of MAT on basis of "book profits", i.e., the profit disclosed in profit and loss account prepared in accordance with provisions of The Companies Act. Ind AS compliant companies shall be required to bifurcate their Profit or Loss account into following two parts -

(i)		Net profit or loss for the year;
(ii)		Net Other Comprehensive Income.

Now question arises whether 'Net other comprehensive income' should be considered for computation of book profit under Section 115JB? On June 8, 2015, the CBDT had constituted a committee to,inter alia, suggest the framework for computation of book profit for the purpose of levy of MAT on the Ind AS compliant companies in the year of adoption and thereafter.

Now the committee has submitted its report after having consultation with MCA. Recommendations of committee and other related terms have been discussed in this article in the form of Q&As.

Time-limit for claiming rebate in case of export starts when docs confirming such export are furnished to assessee

Facts:

1.   Assessee was engaged in manufacturing and exporting lead and its alloys. It exported goods on July 14, 2008 a er payment of duty and filed rebate claim under Rule 18 of the Central Excise Rules, 2002 on September 10, 2009.

2.  The adjudicating authority rejected the claim on the ground of limitation stating that the rebate claim was filed a er expiry of one year from the date a er export of goods as per Section 11B of the Central Excise Act, 1944. The assessee filed writ petition contending that provisions of Section 11B would not be applicable to the instant case.

3.  The assessee also argued that the refund claim could not be filed until export documents and shipping bills were received from Custom authorities. Since the relevant documents were received in first week of September, 2009, refund claim could not be filed. The assessee contended that even if Section 11B was considered to be applicable, then the date of release of the necessary documents by the department would be the date for computation of limitation.