Anuj jain
(CA Final Student)
(163 Points)
Replied 18 August 2014
MAT i.e. minimum alternative tax. It is applicable only for companies. It is levied on adjusted book profits i.e. book profits after adjusting some allowances and disallowances given under section 115JB. The allowances or disallowances given under section 115JB are exhaustive. If company's current tax liability (calculated under normal provisions of I.Tax act) is less then 18.5% of the adjusted book profits of the company, then the company has to pay 18.5% of the book profits i.e. minimum tax u have to pay. Excess amount paid (MAT - normal tax) is allowed as MAT credit.
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