practical book of income tax
This query is : Resolved
08 February 2010
suggest me practical book of income tax (pcc. i have read all theroy but i dont have sufficient practical question. suggest me practical book for may 2010
08 February 2010
Padhukas or tn manoharan
09 February 2010
V.K.Sighania can also useful for practical problems
18 December 2011
Whether mat applicable for goverment company?
10 August 2024
Minimum Alternate Tax (MAT) is a tax mechanism intended to ensure that companies, including those that claim various tax benefits, pay a minimum amount of tax. MAT is governed by **Section 115JB** of the Income Tax Act, 1961.
### Applicability of MAT to Government Companies
1. **Definition of Government Company:**
- A **Government Company** is defined under the Companies Act, 2013 as a company in which the government holds more than 51% of the shares. This definition can apply to both central and state government-owned entities.
2. **MAT Applicability:**
- **Section 115JB** applies to companies, including government companies, that are required to prepare their accounts in accordance with the Companies Act, 2013. It mandates that if the tax payable under the normal provisions of the Income Tax Act is less than 15% of the Book Profit (computed as per the provisions of Section 115JB), then MAT would be applicable.
- **Government Companies** are not exempted from MAT. They are subject to the same MAT provisions as other companies.
3. **Calculation of MAT:**
- MAT is calculated at 15% (plus applicable surcharge and cess) of the Book Profit as per the financial statements prepared under the Companies Act, 2013.
- If the tax computed under the normal provisions of the Income Tax Act is less than this MAT, then the company will be liable to pay MAT.
4. **Exceptions:**
- MAT is not applicable to **companies** that are engaged in **exploration of mineral oils** or **companies in the business of electricity generation**, where specific exemptions are provided under the Income Tax Act.
- However, this exemption does not generally extend to government companies unless specifically exempted by law.
### Practical Implications
- **Government Companies** are subject to MAT if their tax payable under normal provisions is less than the MAT calculated.
- It is crucial for government companies to maintain accurate financial records and prepare their financial statements in accordance with the Companies Act to ensure correct MAT calculations.
### Example
**For a government company:**
1. **Calculate Book Profit** as per the financial statements.
2. **Compute MAT** at 15% of Book Profit.
3. **Compare** with tax payable under normal provisions.
4. **Pay MAT** if it is higher than the tax computed under normal provisions.
### Summary
MAT is indeed applicable to government companies. The principles of MAT ensure that even companies that enjoy various exemptions or benefits are subject to a minimum level of taxation, thereby contributing to the tax revenue in a more equitable manner.
### Applicability of MAT to Government Companies
1. **Definition of Government Company:**
- A **Government Company** is defined under the Companies Act, 2013 as a company in which the government holds more than 51% of the shares. This definition can apply to both central and state government-owned entities.
2. **MAT Applicability:**
- **Section 115JB** applies to companies, including government companies, that are required to prepare their accounts in accordance with the Companies Act, 2013. It mandates that if the tax payable under the normal provisions of the Income Tax Act is less than 15% of the Book Profit (computed as per the provisions of Section 115JB), then MAT would be applicable.
- **Government Companies** are not exempted from MAT. They are subject to the same MAT provisions as other companies.
3. **Calculation of MAT:**
- MAT is calculated at 15% (plus applicable surcharge and cess) of the Book Profit as per the financial statements prepared under the Companies Act, 2013.
- If the tax computed under the normal provisions of the Income Tax Act is less than this MAT, then the company will be liable to pay MAT.
4. **Exceptions:**
- MAT is not applicable to **companies** that are engaged in **exploration of mineral oils** or **companies in the business of electricity generation**, where specific exemptions are provided under the Income Tax Act.
- However, this exemption does not generally extend to government companies unless specifically exempted by law.
### Practical Implications
- **Government Companies** are subject to MAT if their tax payable under normal provisions is less than the MAT calculated.
- It is crucial for government companies to maintain accurate financial records and prepare their financial statements in accordance with the Companies Act to ensure correct MAT calculations.
### Example
**For a government company:**
1. **Calculate Book Profit** as per the financial statements.
2. **Compute MAT** at 15% of Book Profit.
3. **Compare** with tax payable under normal provisions.
4. **Pay MAT** if it is higher than the tax computed under normal provisions.
### Summary
MAT is indeed applicable to government companies. The principles of MAT ensure that even companies that enjoy various exemptions or benefits are subject to a minimum level of taxation, thereby contributing to the tax revenue in a more equitable manner.
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
- Two pancard
- Transfer of MF
- Lifting and cross charges
- E bike purchase can get input in GST
- SSY for 2 daughters
- Eligibility for filling NEW Form 121 from April 2026
- Question of gst and income
- Revenue stamp for individual to Individual
- Issue with PTEC Registration – PAN Already Used
- CERTIFIED TRUE COPY OF PARTNERSHIP DEED
- Spice form, ? mark comes in address
- Tds on GST in connection with sale to public company
- B2B Amendment
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- Regarding Advance Tax not claimed in the Return of Income for A.Y. 2025-26
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
