12 December 2008
MAT (Section - 115JB)(2001-02 onwards)- MAT is a minimum tax payable by Comapnies in India (both foreign and Indian). If the tax liability of a Comapny under normal provisions is lower than 10% of book profits of Company then BOOK PROFIT shall be deemed as total income and 10% of book profit should be deemed as tax liability.
It is very clear from the above that Comapanies needs to pay tax atleast 10% of book profit.
For compuatation of Book Profit please read section 115JB in details.
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