Mat (minimum alternate tax)

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idris (Querist)
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22 September 2011 If a Pvt Ltd Company has loss in previous year (say FY 2009-2010) of Rs.1000000 (after deducting depreciation of Rs.250000) and has made profit in Current year (Say FY 2010-2011) of Rs.700000 (after deducting depreciation).

Will it come under MAT..??

If yes, Please show its detailed calculation

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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24 September 2011 On the Net Profit as per books you have to pay MAT @15% + 3%
Net Profit 7,00,000
Mat @ 15% on 7,00,000

CA Ravi Sisodia

CA Ravi Sisodia (Expert)
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24 September 2011 India has increased the Minimum Alternate Tax (MAT) rate from 15% to 18% of book profits. Foreign companies with income sources in India may be liable to MAT and required to maintain book of accounts. This is irrespective of whether the overseas companies have a permanent establishment in India. (18.54% with cess)

Prachi Agarwal

Prachi Agarwal (Expert)
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28 September 2011 Wont MAT be calculated after adjusting book profits as per sec 115JB.That is the profit of c/y (before any adjustment for previous year loss)shall be reduced by unabsorbed dep or loss of previous year whichever is less (i.e dep in this case) and MAT would be calculated on the resultant fig.

Further you can carry forward the previous year's loss

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