Iyerjayadevan (39 Points)
25 February 2010OUR INIT IS A PRIVATE LIMITED COMPANY SITUATED AT ROORKEE. WE ARE ELIGIBLE FOR DEDUCTION U/S 80IC. SO OUR ENTIRE PROFIT BECOMES TAX FREE. ARE WE COVERED BY MAT? DO WE HAVE TO PAY TAX UNDER MAT? DO WE HAVE TO PAY ADVANCE TAX FOR THAT PURPOSE? PLEASE REPLY ASAP.
Amir
(Learner)
(4016 Points)
Replied 25 February 2010
Dear Iyerjayadevaran,
MAT is applicable on all companies except -
The provisions of this section shall not apply to the income accrued or arising on or after the 1st day of April, 2005 from any business carried on, or services rendered, by an entrepreneur or a Developer, in a Unit or Special Economic Zone, as the case may be.
Tax under MAT is to be paid even if profits are allowed as deduction u/s 80IC...........
Yes provisions of advance tax will apply as usual......& on any shortfall interest u/s 234 B& 234 C shall be payable.......
Bimal Thacker
(Proprietor)
(762 Points)
Replied 25 February 2010
Yes, agree with Amir. Also you have to pay tax under MAT as reduction of book profit though cover 80HHC, 80HHE but not 80IC
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