115jb
This query is : Resolved
06 March 2012
Hello,
I want to that in what circumstances tax u/s 115JB would be applicable?
I want to that in what circumstances tax u/s 115JB would be applicable?
06 March 2012
Section 115JB is applicable to ALL companies.
It is mandatory for every company to compare tax payable on normal income with tax payable as per Section 115JB (MAT).
If MAT is more than normal tax, then the company has to pay MAT.
Tax @ 30% on normal income is compared with 18% of book profits.
The higher of the above figures shall be the tax liability of the company.
Book profit is to be computed as per Explanation 1 to Section 115JB.
It is mandatory for every company to compare tax payable on normal income with tax payable as per Section 115JB (MAT).
If MAT is more than normal tax, then the company has to pay MAT.
Tax @ 30% on normal income is compared with 18% of book profits.
The higher of the above figures shall be the tax liability of the company.
Book profit is to be computed as per Explanation 1 to Section 115JB.
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