RSM India

Newsflash - Rationalization of MAT provisions under Ind AS, in lines with CBDT committee recommendations, with certain changes

With the Ministry of Corporate Affairs (MCA) notifying (Indian Accounting Standards) Ind AS implementation in a phased manner from financial years commencing on or after 1 April 2016, the Central Board of Direct Taxes (CBDT) set up Accounting Standards Committee in June 2015 with a direction to suggest framework for Minimum Alternate Tax (MAT) in view of transition to Ind-AS.

The Committee submitted its first interim report in March 2016 and subsequently in July 2016. The Finance Bill 2017 has rationalized the provisions of section 115JB of the Income Tax Act, 1961 in line with Ind AS and incorporated most of the recommendations of the Committee. However, there are certain changes / additional aspects that the bill has covered, for example, in case demerger transactions. In this publication, we take a closer look at the proposals of the Bill with regards to MAT levy for  companies adopting Ind AS and also examine the changes as compared to the recommendations of the Committee made in its July 2016 report. 

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