01 December 2010
MAT stands fir Minumum Alternative Tax. The provision of MAT are applicable only for Companies including foreign companies.
When a company claims the exemptions U.s10 though they have huge profits, the governemt of India was losing taxes, to mitigate this problem, they introduduced a special provisions of Sec 115JB.
Corporates shall pay the Income tax either normal or U/s. 115JB whichever is HIGHER.
Refer the link
http://law.incometaxindia.gov.in/DIT/File_opener.aspx?page=ITAC&schT=&csId=473576d2-e457-403c-bc49-2c015902cad1&rdb=sec&yr=75996b99-a798-4098-bca8-e66ee23fe426&sec=115JB&sch=&title=Taxmann - Direct Tax Laws
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