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Question ID : 35844

Impact of Change in Method of Depreciation on MAT

company was following Straight Line method of Depreciation till 31.03.2018. However it decides to shift to WDV method from 01.04.2018. The impact of change in method from inception till 31.03.2018 is being charged to opening reserves. What is the MAT impact of such reduction in the opening reserves on account of Change in method of depreciation. Whether any deduction can be made from Book Profits while computing MAT for AY 2019-20 or the reduction in opening reserves be added to unabsorbed depreciation (iii) the amount of loss brought forward or unabsorbed depreciation, whichever is less as per books of account 84[in case of a company other than the company referred to in clause (iih)]. As stated in Explanation 1 to 115JB

Posted by Prashanth Karanth on Oct 15, 2018