Manikanth (Chartered Accountant) (342 Points)
12 February 2013I think MAT is applicable to every company wheather Big or Small. No condition should satisfy for applicability of MAT
Is there any objection to my criteria??
Is there any limit (or) any condition should satisfy for applicability of MAT to the companies??
CA Gaurav Ajit Potdar
(Chartered Accountant)
(846 Points)
Replied 12 February 2013
MAT is applicable to every company if normal tax payable is less than 18.5% of its book profit.
CA. Dushyant ZALA
(PRACTISING C.A.)
(72 Points)
Replied 12 February 2013
Yes your are right but provision of section 115 jb is not applicable in the case of Banking Company.
anjan
(student)
(101 Points)
Replied 13 February 2013
MAT is applicable to all the companies irrespective of size and nature of the company.
It is applicable to all companies who are require to prepare P&L A/c.
If companies established undered spl acts. then book profit will be calculated as per P&L A/c prepared in accordance with the respective act. this is from the a.y 2013-14.
Previously mat is applicable to those companies who are prepared p&l a/c as per scheduleVI.
CA Sanjay Bag
(CHARTERED ACCOUNTANT)
(3340 Points)
Replied 13 February 2013
As per the provisions of Section 115JB of the Income Tax Act, 1961 MAT is applicable to all companies (including foreign companies).
CA Sanjay Bag
(CHARTERED ACCOUNTANT)
(3340 Points)
Replied 13 February 2013
No, it is not ture that the MAT is not applicable to Banking Companies. MAT is applicable to it.
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 13 February 2013
| Originally posted by : anjan | ||
 |
MAT is applicable to all the companies irrespective of size and nature of the company. It is applicable to all companies who are require to prepare P&L A/c. If companies established undered spl acts. then book profit will be calculated as per P&L A/c prepared in accordance with the respective act. this is from the a.y 2013-14. Previously mat is applicable to those companies who are prepared p&l a/c as per scheduleVI. |
 |
But MAT is still not applicable to a company carrying on Life Insurance Business.
Manikanth
(Chartered Accountant)
(342 Points)
Replied 13 February 2013
From AY 13-14 onwards MAT is also applicable to the companies which are established under special acts.
Is Banking companies, Insurance companies come under the preview of MAT or not??If not, why these are not included under MAT any reason for it ?
Please Give me the list of companies which are exempted from MAT...
Saurabh Maheshwari
(B.com,ACA)
(5923 Points)
Replied 13 February 2013
@ Mnikanth earlier(upto AY 2012-13) Banking , Insurance and Electricity wer exempt from MAT , but w.e.f AY 2013-14(Finance Budget 2012) these were brought to the MAT net.For the purpose of MAT the profits of such companies is Profit as per P&L prepared as per their respective Acts.
However, Co. carrying on Life Insurance business are still exempt from MAT.
Read more from my article on MAT part-2, where I have focused on the part you are asking for. /articles/mat-make-it-easy-part-2-16535.asp#.URtCaeR9ErM
Ganeshbabu K
(Audit and Tax Advisory)
(48564 Points)
Replied 13 February 2013
PROVISION AS PER SECTION 115JB:
STEP I: Find out tax payable under the normal provision i.e. as per p&l a/c [Tax @ 33.99%(SC*+EC+SHEC)].
STEP II: Find out Book profit** and calculate the tax @
11.33%((SC+EC+SHEC)*.
STEP III: STEP I – STEP II = If more than zero C/F and set of with next year tax credit up to 7 years.
If less then zero Or zero 115JB will not apply.
**BOOK PROFIT AS PER 115JB:
| Net profit as per profit& loss account |
|
xxx |
| ADD: | ||
| Income tax paid or payable | xx | |
| FBT | xx | |
| Proposed dividend or dividend paid | xx | |
|
Amount carried to any reserve (Other than33AC). |
xx | |
| The amount of any expenditure relatable to any income u/s 10(except 10(38)) or 11or 12 will apply. | xx | |
| Provision made to liabilities (Other than ascertained). | xx | |
| Depreciation | xx | xxx |
|
LESS: |
||
| Amount withdrawn from any Reserve or provision. | xx | |
| The amount of any income relatable to any income u/s 10(except 10(38)) or 11or 12 will apply. | xx | |
| Depreciation as per P&L a/c (Except depreciation of revaluation assets) | xx | |
| Amounts withdrawn from revaluation reserves and credited to p&l account, but it does not exceed the amount of depreciation. | xx | |
|
The amount of loss B/F or unabsorbed depreciation |
xx | |
|
The amount of profits of sick industries company |
xx | (xxx) |
|
BOOK PROFIT |
xxx |
*(surcharge + education cess + higher secondary edu cess)
CA Sanjay Bag
(CHARTERED ACCOUNTANT)
(3340 Points)
Replied 14 February 2013
CAclubindia
