CAN ANY BODY TELL ME WHY THE MAT (MINIMUM ALTERNATIVE TAX ) IS BEEN IMPOSED ON COMPANY,
WHAT IS THE PLUS POINT FOR THE GOVERNMENT FOR IMPOSING THE MAT
2 Replies
CA Pawan Lakhotia
(Infosys Limited)
(202 Points)
Replied 15 April 2010
HI PRADEEP,
MAT US 115JB OF INCOME TAX IS INTRODUED FOR THE PROTECTION OF REVENUE TO THE GOVT.IT WAS FOUND THAT BEFORE INTRODUCTION OF MAT MANY COMPANIES SUCH AS RELIANCE ,TATA ETC ARE EARNING HUGE PROFITS AND DISTRIBUTING GOOD AMOUNT OF DIVIDEND TO THERE SHAREHOLDERS ,STILL NOT PAYING TAX TO THE GOVT.
THE PROFITS AND LOSS A/C AS ADOPT IN THE AGM SHOWES EITHER BOOK PROFIT/LOSS ..SO THE INCOME TAX AUTHORITIES BRINH THE CONCEPT OF MAT UNDER WHICH COMPANIES ARE LIABLE TO PAY MINIMUM AMOUNT OF TAX AS ADJUSTED WITH BOOK PROFIT AS PRESCRIBED IN THE SEC 115JB OF THE ACT.
THIS IS BACKGROUN OF MAT FOR CACLUATION AND ADJSTMENT FOR ITEMS PLEASE GO THROUG AFROESAID SECTION...
IF YOU NEED FURTHER CLASSIFICATION PLEASE POST THE SAME.
AS YOU ARE STUDENT OF CA FINAL IT SHOULD BE CLEARE FROM THE POINT OF VIEW OF EXAMINTATION ALSO
THANKS
Aditya Maheshwari
(CA in Practice)
(35867 Points)
Replied 15 April 2010
Explained in a very good way
Recent Topics
- Reporting in gstr9 of ITC of Previous year reverse
- Tax on Reimbursement of House Rent
- MAHARASHTRA CHARITY COMMISSIONER WEBSITE
- Explanation 3 to section 11(1) read with section 4
- Ammendment in Partnership On Death of Partner and
- TDS Provisions applicability Tax Audit Individual
- NAME CHANGE OF HUF
- Advisory for Reporting TDS Deducted by scrap Deale
- Section 194 J Technical Service/Professional Servi
- Solving of Export Related Problems
Related Threads
CAclubindia
