MAT credit..
This query is : Resolved
22 December 2008
MAT is the Minimum Alternate Tax payable by the company in case the tax payable on income computed is less than 10% of the book profit. In case the tax payable is less than 10% of the Book Profit then company is to pay 10% of Book Profit as MAT. Refer section 115JB of the Income Tax Act.
ravi taneja
(Expert)
27 December 2008
As per section 115JB, MAT means Minimum Alternative tax. If tax liability of a company under the normal provision is lower than 10% of book profit, company has to pay tax on the basis of MAT.
CREDIT OF MAT
If Tax paid during the current year is in accourding to MAT provision.
e.g.
MAT tax Rs. 56.38 lacs
Tax@30% Rs.40.39 lacs
Then tax credit of Rs. 15.99 lacs available to comapny till 7 Assessment year from the immediately succeeding the assessment year.
Ta credit shall be allowed set off in a future year in which tax becomes payable on the total income computed in accordance with the provisions other than 155JB.
CREDIT OF MAT
If Tax paid during the current year is in accourding to MAT provision.
e.g.
MAT tax Rs. 56.38 lacs
Tax@30% Rs.40.39 lacs
Then tax credit of Rs. 15.99 lacs available to comapny till 7 Assessment year from the immediately succeeding the assessment year.
Ta credit shall be allowed set off in a future year in which tax becomes payable on the total income computed in accordance with the provisions other than 155JB.
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
- Depreciation Chart Companies Act
- GST Audit whether Govt Companies are exempt?
- PTRC Show Cause Notice on Email
- Capital Gail Exemption Certificate
- Utilisation Fy 25-26 TDS challans in Fy 26-27 TDS Return
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Oct 2025 Invoices
- Transfer of Physical Stock Between Two Proprietorship Concerns
- Issuing of delivery challan by seller of goods
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
