Query on MAT

This query is : Resolved

Devendra (Querist)
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13 August 2010 Following are my queries, please help me solve them:-

1)If XYZ Pvt. Ltd. has a book profit after all adjustments of Rs. 3860011 on which tax comes to Rs. 1192743. Is it still liable to pay MAT ? Or is it the tax calculated (ie. Rs. 1192743) the MAT liability for XYZ Pvt. Ltd.?

2)If XYZ Pvt. Ltd. has a loss of Rs. 3756000. after all adjustments. Is it liable to pay MAT?

Kuldeep Verma

Kuldeep Verma (Expert)
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14 August 2010 For AY 2010-11, Mat rate is 15%, by that Mat comes 579000(appx) but tax as per IT is higher than Mat that why have to pay Tax for Rs 1192743.But if you have Mat credit available than u can utilise that to pay less tax.
secondly, if company has loss and after all adjustments of Mat, the book profit still negative than he is not liable to pay Mat.