What is MAT?What is the treatment in accounts?
This query is : Resolved
18 December 2009
What is MAT?What is its accounting treatment?Explain with an example?
18 December 2009
MAT is Mandatory Alternative Tax levied on Company Assessee only.
It means that if a company has book profits but; due to various allowances and deductions; the tax liability becomes NIL then at least 30% of such book profits will be treated as taxable profits and accordingly Income Tax will be payable by the company.
Refer Section 115J of the Income Tax Act.
CA Rakhecha,Surat
It means that if a company has book profits but; due to various allowances and deductions; the tax liability becomes NIL then at least 30% of such book profits will be treated as taxable profits and accordingly Income Tax will be payable by the company.
Refer Section 115J of the Income Tax Act.
CA Rakhecha,Surat
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