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.
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.
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