MAT
This query is : Resolved
03 March 2010
What is Minimum Alternative Tax ?
What is FBT ? What r the factor Affecting it ?
Is there any nexus between FBT & MAT?
Pls kindly reply the same
What is FBT ? What r the factor Affecting it ?
Is there any nexus between FBT & MAT?
Pls kindly reply the same
03 March 2010
03.03.2010
MAT MEANS MINIMUM ALTERNATIVE TAX CHARGED U/S 115JB TO THE
COMPANIES. IT WAS FIRST INTODUCED BY V.P. SINGH WHEN HE WAS
THE FM OF OUR COUNTRY. HE REALISED THAT COMPANIES DECLARING
HUGE DIVIDEND AND PAYING LESSOR TAX. TO AVOID SUCH THINGS
HE INTODUCED MAT WHICH IS CHARGED @ 10%, current (18%) ON THE BOOK PROFIT DECLARED BY THE COMPANY.
FRINGE BENEFITS TAX (FBT) IS THE TAX APPLIED TO MOST, ALTHOUGH NOT ALL, FRINGE BENEFITS. A NEW TAX WAS IMPOSED ON EMPLOYERS BY INDIA'S FINANCE ACT 2005 INTRODUCED FOR THE FINANCIAL YEAR COMMENCING APRIL 1, 2005. IN THE BUDGET ANNOUNCED ON JULY 6, 2009, THE GOVERNMENT ANNOUNCED THAT IT WAS TO BE ABOLISHED. U/S (115WM)
THE FOLLOWING ITEMS ARE COVERED:
• EMPLOYER'S EXPENSES ON ENTERTAINMENT, TRAVEL, EMPLOYEE WELFARE AND ACCOMMODATION. THE DEFINITION OF FRINGE BENEFITS THAT HAVE BECOME TAXABLE HAS BEEN SIGNIFICANTLY EXTENDED. THE LAW PROVIDES AN EXACT LIST OF TAXABLE ITEMS.
• EMPLOYER'S PROVISION OF EMPLOYEE TRANSPORTATION TO WORK OR A CASH ALLOWANCES FOR THIS PURPOSE.
• EMPLOYER'S CONTRIBUTIONS TO AN APPROVED RETIREMENT PLAN (CALLED A SUPERANNUATION FUND).
• EMPLOYEE STOCK OPTION PLANS (ESOPS) HAVE ALSO BEEN BROUGHT UNDER FRINGE BENEFITS TAX FROM THE FISCAL YEAR 2007-08.
AS PER CURRENT AMENDMENT NOW, FBT NOT APPLICABLE FROM ASSESMET YEAR 2010-11
for more information regarding link, you can log on to the following path:
http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf
MAT MEANS MINIMUM ALTERNATIVE TAX CHARGED U/S 115JB TO THE
COMPANIES. IT WAS FIRST INTODUCED BY V.P. SINGH WHEN HE WAS
THE FM OF OUR COUNTRY. HE REALISED THAT COMPANIES DECLARING
HUGE DIVIDEND AND PAYING LESSOR TAX. TO AVOID SUCH THINGS
HE INTODUCED MAT WHICH IS CHARGED @ 10%, current (18%) ON THE BOOK PROFIT DECLARED BY THE COMPANY.
FRINGE BENEFITS TAX (FBT) IS THE TAX APPLIED TO MOST, ALTHOUGH NOT ALL, FRINGE BENEFITS. A NEW TAX WAS IMPOSED ON EMPLOYERS BY INDIA'S FINANCE ACT 2005 INTRODUCED FOR THE FINANCIAL YEAR COMMENCING APRIL 1, 2005. IN THE BUDGET ANNOUNCED ON JULY 6, 2009, THE GOVERNMENT ANNOUNCED THAT IT WAS TO BE ABOLISHED. U/S (115WM)
THE FOLLOWING ITEMS ARE COVERED:
• EMPLOYER'S EXPENSES ON ENTERTAINMENT, TRAVEL, EMPLOYEE WELFARE AND ACCOMMODATION. THE DEFINITION OF FRINGE BENEFITS THAT HAVE BECOME TAXABLE HAS BEEN SIGNIFICANTLY EXTENDED. THE LAW PROVIDES AN EXACT LIST OF TAXABLE ITEMS.
• EMPLOYER'S PROVISION OF EMPLOYEE TRANSPORTATION TO WORK OR A CASH ALLOWANCES FOR THIS PURPOSE.
• EMPLOYER'S CONTRIBUTIONS TO AN APPROVED RETIREMENT PLAN (CALLED A SUPERANNUATION FUND).
• EMPLOYEE STOCK OPTION PLANS (ESOPS) HAVE ALSO BEEN BROUGHT UNDER FRINGE BENEFITS TAX FROM THE FISCAL YEAR 2007-08.
AS PER CURRENT AMENDMENT NOW, FBT NOT APPLICABLE FROM ASSESMET YEAR 2010-11
for more information regarding link, you can log on to the following path:
http://www.irs.gov/pub/irs-tege/fringe_benefit_fslg.pdf
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Two pancard
- Query Regarding Income Tax Rate on Gain from Transfer of Partnership Stake (LLP Partner)
- Transfer of MF
- Can we claim ITC in 28%
- Regarding E-invoice Generation
- Forgot to update debit note in gst
- Relief Calculation u/s 89 of ITax 1961 in TableA Form10E
- E bike purchase can get input in GST
- Registration of partnership firm maharashtra
- PARTNERSHIP FIRM REGISTARTION
- Spice form, ? mark comes in address
- Tds on GST in connection with sale to public company
- B2B Amendment
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- Regarding Advance Tax not claimed in the Return of Income for A.Y. 2025-26
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
