Minimum alternative tax(mat)

When is MAT Applicable.?

Also How do I Compute the MAT?

Can I Set off Mat Credit Against the tax Payable for the current year?

Is it true that if a company shows loss then MAT will Always be Applicable?

Originally posted by : rushi
	When is MAT Applicable.? Also How do I Compute the MAT? Can I Set off Mat Credit Against the tax Payable for the current year? Is it true that if a company shows loss then MAT will Always be Applicable?

It is the minimum tax that the company has to pay if the actual tax amount as per IT act is less than 18.5% (pls confirm the rate) of the Adjusted Book Profit.

MAT credit is available for set to an extent.

It is not necessary MAT will always applicable when co. is in loss.

How do i compute Adjusted Book Profit?

MAT introduced in Finance Act, 2000

From AY 2009-10

Minimum Alternate Tax (MAT) to be increased to 15 per cent of book profits from 10 per cent. The period allowed to carry forward the tax credit under MAT to be extended from seven years to ten years.

Rate increased to 18% from 15% from AY 2011-12.

can anyone explain regarding minimum alternative tax?

in which case it is payable