MAT

CA Article Student


I think MAT is applicable to every company wheather Big or Small. No condition should satisfy for applicability of MAT

 

Is there any objection to my criteria??

 

Is there any limit (or) any condition should satisfy for applicability of MAT to the companies?? 

 

 
Reply   
 

MAT is applicable to every company if normal tax payable is less than 18.5% of its book profit.

 
Reply   
 



Yes your are right but  provision of section 115 jb is not applicable in the case of Banking Company.

 

 
Reply   
 

MAT is applicable to all the companies irrespective of size and nature of the company.

It is applicable to all companies who are require to prepare P&L A/c.

If companies established undered spl acts. then book profit will be calculated as per P&L A/c prepared in accordance with the respective act. this is from the a.y 2013-14.

Previously mat is applicable to those companies who are prepared p&l a/c as per scheduleVI.

 


Total thanks : 4 times

 
Reply   
 
CHARTERED ACCOUNTANT


As per the provisions of Section 115JB of the Income Tax Act, 1961 MAT is applicable to all companies (including foreign companies).

 
Reply   
 
CHARTERED ACCOUNTANT


No, it is not ture that the MAT is not applicable to Banking Companies. MAT is applicable to it.

 
Reply   
 

Originally posted by : anjan

MAT is applicable to all the companies irrespective of size and nature of the company.

It is applicable to all companies who are require to prepare P&L A/c.

If companies established undered spl acts. then book profit will be calculated as per P&L A/c prepared in accordance with the respective act. this is from the a.y 2013-14.

Previously mat is applicable to those companies who are prepared p&l a/c as per scheduleVI.

 

But MAT is still not applicable to a company carrying on Life Insurance Business.

 
Reply   
 
CA Article Student


From AY 13-14 onwards MAT is also applicable to the companies which are established under special acts.

 

Is Banking companies, Insurance companies come under the preview of MAT or not??If not, why these are not included under MAT any reason for it ?

 

Please Give me the list of companies which are exempted from MAT...

 
Reply   
 

@ Mnikanth earlier(upto AY 2012-13)  Banking , Insurance and Electricity wer exempt from MAT , but w.e.f AY 2013-14(Finance Budget 2012) these were brought to the MAT net.For the purpose of MAT the profits of such companies is Profit as per P&L prepared as per their respective Acts.

However, Co. carrying on Life Insurance business are still exempt from MAT.

Read more from  my article on MAT part-2, where I have focused on the part you are asking for. http://www.caclubindia.com/articles/mat-make-it-easy-part-2-16535.asp#.URtCaeR9ErM


Total thanks : 1 times

 
Reply   
 
Audit and Tax Advisory


 

PROVISION AS PER SECTION 115JB:

STEP I: Find out tax payable under the normal provision i.e. as per p&l a/c [Tax @ 33.99%(SC*+EC+SHEC)].

STEP II: Find out Book profit** and calculate the tax @
11.33%((SC+EC+SHEC)*.

STEP III: STEP I – STEP II = If more than zero C/F and set of with next year tax credit up to 7 years.

If less then zero Or zero 115JB will not apply.

**BOOK PROFIT AS PER 115JB:

 

Net profit as per profit& loss account

 

xxx
ADD:    
Income tax paid or payable xx  
FBT xx  
Proposed dividend or dividend paid xx  
Amount carried to any reserve
(Other than33AC).
xx  
The amount of any expenditure relatable to any income u/s 10(except 10(38)) or 11or 12 will apply. xx  
Provision made to liabilities (Other than ascertained). xx  
Depreciation xx xxx
     

LESS:

   
Amount withdrawn from any Reserve or provision. xx  
The amount of any income relatable to any income u/s 10(except 10(38)) or 11or 12 will apply. xx  
Depreciation as per P&L a/c (Except depreciation of revaluation assets) xx  
Amounts withdrawn from revaluation reserves and credited to p&l account, but it does not exceed the amount of depreciation. xx  

The amount of loss B/F or unabsorbed depreciation 
W.E. less, as per book of accounts.

xx  

The amount of profits of sick industries company

xx (xxx)

BOOK PROFIT

  xxx

 

*(surcharge + education cess + higher secondary edu cess)

 
 
Reply   
 

LEAVE A REPLY


    

Your are not logged in . Please login to post replies

Click here to Login / Register  



 




close x