TAX

This query is : Resolved

Guest

Guest (Querist)

10 March 2009 PLS ANY BODY TELL ME THAT WHAT IS MAT
APPLICABLE AND WHAT IS THE PERCENTAGE OF DEPERICATION AS PER COMPANY ACT FOR COMPUTER AND MECHINERY AND BUILDING AND MOTORCAR AND FURNITURE

Jitender

Jitender (Expert)
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10 March 2009 mat - minimum alternative tax
it is minimum tax paid by the co.
rate 10%

Manmohan ACA, CS

Manmohan ACA, CS (Expert)
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11 March 2009

Minimum Alternate tax (called “MAT”) was imposed on companies due to the increase in the number of zero-taxpaying companies.
companies pays no or less tax, in spite of earning good book profits and having paid good dividends.
Companies claims that their tax profit (as per provision of income tax Act) is nil or less so thay (company) need not to pay tax.
SO to trap the tax escaping companies & reduce evasion MAT was introduces.

So that under mat system a company has to pay
(1) tax on profit as per computed as per income tax act
OR
(2) @ 10% book profit (as per account) after some simple adjustment u/s 115JB
Which ever is HIGHER

Depreciation rate
PART A TANGIBLE ASSETS
I Buildings
Block 1. Buildings (other than covered by sub-item 3 below) which are
used mainly for residential purposes
5%
Block 2. Buildings which are not used mainly for residential purposes
and not covered by items of Block (1) above and (3) below
10%
Block 3. Buildings acquired on or after the 1st day of September, 2002 for
installing machinery and plant forming part of water supply project or
water treatment system and which is put to use for the purpose of
business of providing infrastructure facilities under clause (i) of subsection
(4) of section 80-IA
100%
Block 4. Purely temporary erections such as wooden structures
100%

II Furniture and Fittings
Block 1. Furniture and fittings including electrical fittings
10%
III Plant & Machinery
Block 1. Motors buses, motor lorries, motor taxis used in a
business of running them on hire
30%
Block 2 Aeroplanes, aeroengines
40%
Block 3. Air, Water Pollution control equipments, Solid waste control equipment
100%
Block 4. Energy Saving Devices
80%
Block 5. Motor cars other than those used in a business of running
them on hire, acquired or put to use on or after 1-4-1990.
15%
Block 6 Computers including computer software
60%
Block 7. Annual Publications owned by assessees carrying on a profession
100%
Block 8. Books owned by assessees carrying on business in running
lending libraries
100%
Block 9. Books, other than annual publications, owned by assesses
carrying on a profession
60%
Block 10. Plant & machinery (General rate)
15%

Regards……………..!

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