MAT

Save Share

This query is : Resolved

sanalkumar t m (Querist)
Follow

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

RAMESH KUMAR VERMA

RAMESH KUMAR VERMA (Expert)
Follow

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:
â€¢ 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.
â€¢ EMPLOYER'S PROVISION OF EMPLOYEE TRANSPORTATION TO WORK OR A CASH ALLOWANCES FOR THIS PURPOSE.
â€¢ EMPLOYER'S CONTRIBUTIONS TO AN APPROVED RETIREMENT PLAN (CALLED A SUPERANNUATION FUND).
â€¢ 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:
https://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