What is mat

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Querist : Anonymous

Querist : Anonymous (Querist)

26 July 2012 WHAT IS MAT, WHAT ARE MAIN AIM TO INTRODUCE THE MAT.

Amol S Joglekar

Amol S Joglekar (Expert)
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26 July 2012 Minimum Alternate Tax. It is to do away with ZERO tax companies.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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26 July 2012 NORMALLY, a company is liable to pay tax on the income computed in accordance with the provisions of the income tax Act, but the profit and loss account of the company is prepared as per provisions of the Companies Act. There were large number of companies who had book profits as per their profit and loss account but were not paying any tax because income computed as per provisions of the income tax act was either nil or negative or insignificant. In such case, although the companies were showing book profits and declaring dividends to the shareholders, they were not paying any income tax. These companies are popularly known as Zero Tax companies.

In order to bring such companies under the income tax act net MAT was introduced.

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