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Llp and mat u/s 115jb

CA., CS. swati agarwal (Sr Manager-Accounts) (108 Points)

28 December 2011

Is an LLP subject to the provisions of MAT u/s 115JB of the IT Act, 1961?

if yes, then it is applicable from which assessment year?

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4 Replies

CA Ketan Waghela (Partner at Elite Educare) (356 Points)
Replied 28 December 2011

Swati ji,

LLPs are covered under provisions of section 115JC and not u/s 115JB.

LLPs shall be subject to alternate minimum tax @ 18.5 percent on the adjusted total income as per the income tax provisions as against book profit in case of AMT (Alternate Minimum Tax).

The new tax named alternate minimum tax shall be levied w.e.f. 1 April 2011 and thus shall apply to A.Y. 2012-13 and in subsequent years.

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@*CS Siddharth Bumb. * (B.Com, CA Final, CS ) (5270 Points)
Replied 29 December 2011

Originally posted by : Ketan Waghela
	Swati ji, LLPs are covered under provisions of section 115JC and not u/s 115JB. LLPs shall be subject to alternate minimum tax @ 18.5 percent on the adjusted total income as per the income tax provisions as against book profit in case of AMT (Alternate Minimum Tax). The new tax named alternate minimum tax shall be levied w.e.f. 1 April 2011 and thus shall apply to A.Y. 2012-13 and in subsequent years.

totally agreed with Mr Ketan.... and thank you to Mr ketan

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CA., CS. swati agarwal (Sr Manager-Accounts) (108 Points)
Replied 16 March 2012

thank you for the information.

well, one more thing?

is there any difference in the provisions realting to the computation of book profits of the LLP from those used in computing thr book profits of company assessee?

Sonam Bidasaria (CA) (770 Points)
Replied 20 March 2012

In case of LLP, the term "Book Profit" is replaced with "Adjusted Total Income".

“Adjusted total income” shall be the total income before giving effect to provisions of Chapter XII-BA as increased by

the deductions claimed under any section (other than section 80P) included in Chapter VI-A under the heading

“C – Deductions in respect of certain incomes” and deduction claimed under section 10AA;

(Note - It means first calculate TI as per the Normal provisions of Income Tax and then add back deduction under Xhaptyer VIA and 10AA)

Whereas Book profit is computed after doing adjustments of "specified 16 adjustments" to the profit and loss as computed in accorance with Schedule Vi to Companies Act, 1956.