MAT is the minimum alternate tax. MAT is applied when the tax under normal provisions is less than MAt. We generally see such instances when there are brought forward losses.
I have already sent you the computaiton of tax. Tax liability shall not change.
19 December 2007
MAT is calculated only from the Net Profit and not from the Gross profit. From the Net profit some of the expenditure like FBT are allowable expenditure and some deductions under chapter VIA also applicable.
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