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MAT and Direct Taxes Code...

Srikant (CA,CS,CMA,LLb,M.Com) (1289 Points)

21 October 2009

Dear friends,

Have any idea about position of MAT under new Direct Taxes Code ?

A recent news came that says MAT should be abolished under New Direct Taxes code. what is your view ?

Please go through the attached file...

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5 Replies

CA. Gurdeep Singh Chawla (C A) (7080 Points)
Replied 21 October 2009

It should be amended not abolished.

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Srikant (CA,CS,CMA,LLb,M.Com) (1289 Points)
Replied 21 October 2009

Originally posted by :Srikant
"	Dear friends, Have any idea about position of MAT under new Direct Taxes Code ? A recent news came that says MAT should be abolished under New Direct Taxes code. what is your view ? Please go through the attached file...	"

Can you suggest some possible amendments ?

e.g. Rate of MAT to be increased ( for 2010-11 AY it is 15 %) or few adjustments to be incorporated or anything else ?

Thanks very much for your interest..

Ashish M (Chartered Accountant) (2731 Points)
Replied 21 October 2009

under the new direct tax code, the MAT is proposed to be based on a percentage on the value of assets rather than profits as like the current system!!!!!!!!!!!!!!!!!!!

it is .25% of 'value of gross assets' in case of banking co. and in case of other companies, it is 2%...!!!!!!! ALSO IT IS CONSIDERE AS FINAL TAX AND HENSE NO CREDIT IN LATER YRS.......!!!!!!!!!

Srikant (CA,CS,CMA,LLb,M.Com) (1289 Points)
Replied 23 October 2009

Originally posted by :Ashish M
"	under the new direct tax code, the MAT is proposed to be based on a percentage on the value of assets rather than profits as like the current system!!!!!!!!!!!!!!!!!!! it is .25% of 'value of gross assets' in case of banking co. and in case of other companies, it is 2%...!!!!!!! ALSO IT IS CONSIDERE AS FINAL TAX AND HENSE NO CREDIT IN LATER YRS.......!!!!!!!!!	"

I need some thing more....More participants in this discussion...is there anybody to suggest something here ?