The Finance Act, 2017 introduced tax provisions under Minimum Alternate Tax (MAT) provisions for Indian Accounting Standards (Ind AS) compliant companies. The provisions resulted in most Ind AS adjustments, including transition impact, being taxed under MAT provisions.
The Central Board of Direct Taxes (CBDT) received representations from various stakeholders seeking clarifications on certain issues arising therefrom. The matter was referred to an expert committee. The committee after duly considering the representations from stakeholders has recommended issuance of clarifications by way of FAQs for these issues. The matter was considered by the Board and the following clarifications are issued. Additionally, to have parity between the transition adjustment and ongoing adjustments on account of items adjusted to other equity, the committee has recommended amendment to section 115JB(2A) of the Income-tax Act (‘the Act’) w.e.f. 1st April 2017.
We trust you will find the attached newsflash useful.