about mat

MAT means Minimum Alternative Tax, lavied from Company if tax as per income tax is less than tax as per compay's act profit

In simple terms, All companys must pay tax, this is even if the company does not hav taxable profits....This tax is called MAT

Minimum Alternate Tax provides that where the total taxable income of a company is less than 30 percent of its book profits, computed in accordance with the Companies Act, 1956, the company would be required to pay income tax on 10.5 percent of its book profits.

A small amendment to what Ms.Annie said. Not all companies are required to pay tax. All companies who exhibit book profit must pay tax, not withstanding their taxable income as computed under IT Act is zero!

Dear Mr. Srinivasaraghavan

Would like to know more about "Companies who exhibit book profit must pay tax"

Also MAT rate is 10% or 10.5%?

Regards