Hai Friends
Can you tell me about MAT in detail ?
Thanks in Advance
1 Replies
CA Sai Kumar
(CA)
(93 Points)
Replied 07 November 2012
Earlier, certain companies, though earning profits are not used to pay tax due to various exemptions, weighted deductions and tax planning structure. To make such companies to pay income-tax, the concept of Minimum Alternate Tax was introduced. As per MAT provisions, a COMPANY has to calculate book-profits after making adjustments prescribed in Sec 115JB. The tax rate to be applied at present is 18.5% of book-profit (surcharge and Education cess additional). This tax has to be compared with the tax calculated as per normal provisions of IT act and whichever amount is higher has to be paid for that Assessment Year. The excess of MAT paid over normal tax will be allowed to be carried forward and set-off against normal tax in future assessment years.
Recent Topics
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
- I want to knw Hsn code and gst rate of resin produ
- Schedule FA clarification
- Income tax on freelance income from crypto
- ITC temporary reversal and reclaim
- Query on Transactions
Related Threads
CAclubindia
