03 August 2024
### MAT (Minimum Alternate Tax) for SEZ Units
**MAT Applicability:**
- **SEZ Units and MAT:** As per the Income Tax Act, 1961, MAT is generally applicable to all companies, including those operating in Special Economic Zones (SEZs). However, specific provisions apply to SEZ units under different sections of the Act.
- **MAT Exemption Status:** While SEZ units were initially exempt from MAT, this exemption has been removed in recent amendments. Therefore, SEZ units are now subject to MAT like other companies.
**MAT Rates:**
- **Current MAT Rate:** For the financial year 2023-24, the MAT rate is 15% of the book profit under Section 115JB of the Income Tax Act. This rate may be subject to changes as per annual Finance Acts.
### Advance Tax for SEZ Units
**Advance Tax Applicability:**
- **Advance Tax for SEZ Units:** SEZ units are subject to advance tax like any other company. They are required to estimate their tax liability and pay advance tax in the specified installments during the financial year.
**Advance Tax Payment:**
- **Installments:** Advance tax payments are made in four installments: - **15%** by June 15 - **45%** by September 15 - **75%** by December 15 - **100%** by March 15
**Advance Tax Rates:**
- **Advance Tax Rate:** The advance tax payment is based on the estimated income for the financial year, and the rates are as per the general corporate tax rates applicable for the year. For companies, the advance tax rate is calculated based on the tax payable on the estimated total income, which includes adjustments for any MAT liability.
### Summary
- **MAT Rate:** For SEZ units, the MAT rate is 15% of the book profit as per Section 115JB. - **Advance Tax Rate:** SEZ units are subject to the same advance tax payment requirements as other companies, with payments made in four installments based on the estimated tax liability.
For the latest updates and specific details, always refer to the current Finance Act and consult with a tax professional.
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