MAT Applicability

This query is : Resolved

Naga Vamshi Nambi (Querist)
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26 September 2010 A 100% EOU Unit registered under SEZ, Got IncomeTax exemption under Sec 10 B. Weather MAT is applicable to this unit for the financial year 2009-2010.

IF no please let me know the provision & act

Thanks in advance

Vamshi

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Guest (Expert)

26 September 2010 MAT shall not apply to the income accrued or arising from any business or service carried on by an entrepreneur, a developer in a unit or SEZ.

However, the profits derived by any undertaking covered by sections 10A, 10B, 10AA and 10BA though eligible for exemption while computing taxable income under the normal provisions, the same shall be subject to book profit tax.

http://law.incometaxindia.gov.in/DitTaxmann/IncomeTaxActs/2008ITAct/sec_115ja.htm

Please check the link for detailed discussion. Other experts please confirm the same

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Parveen Bansal

Parveen Bansal (Expert)
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27 September 2010 Section 10B is part of the Chapter III. Section 115 J Explanation excludes expenditure and incomes relating to income exempted under Chapter III [For expenditure clause (f); For income clause (ii)], while computing book profits. Hence MAT does not apply to Section 10B Income.

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