valutation of MAT credit

MAT refers to Minimum Alternative Tax. Section 115JB regulates the provisions of MAT. This provisions are applicable if tax liability of the company (indian or foreign)  under normal provision is lower than MAT.

MAT rates have undergone drastic changes, the rates are given below:

1) 7.5% for AY 2001-02 to 2006-07

2) 10% for AY 2007-08 to 2009-10

3) 15% for AY 2010-11 &

4) 18% from AY 2011-12.

MAT Credit: The excess of MAT over normal tax can be claimed as credit and can be c/f for 10 assessment year to set-off against future normal tax being in excess of MAT.

The above detail is just a gist of the provisions to understand the provisions please go through Section 115 JA to 115 JB of the Income TAX Act, 1961.

Warm regards

Kanti Salecha (e-mail:kanti.salecha @ gmail.com)

K.Salecha & Co.,

Chartered Accountants

Bangalore.