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:
https://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:
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
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Post Office RD Interest
- Itr 1 processing
- Reporting Income under Section 44ADA
- Building and other construction workers welfare cess act 1996
- ITR validation error - Balance sheet is not filled
- ITR 1: Details for showing Exempt Income
- Bank Accounts in Balance Sheet for ITR 3
- ITR 3 FILING OF AN INDIVIDUAL (PARTNER IN A PARTNERSHIP fIRM)
- Annual return of gst limit
- Eway bill for machinery reparing
- Lift replacement entries in housing society
- Delisted shares sold in off market/ Rebate u/s87A
- In Exports Sales HSN details where to fill
- Opting out" of regime provided under subsection (1A) of Section 115BAC but Form 10IEA is not filed.
- Difference in tax comparison report
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
