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Kunal (chartered accountant)     27 January 2012

Alternate minimum tax v/s mat - imp. fr may 2012

AMT VS MAT

The concept to AMT is similar to the Minimum Alternate Tax (MAT), as applicable to the Companies but since there is no concept of book profits in case of LLP, the LLP’s will be liable to pay AMT on their adjusted total income (equivalent to adjusted taxable income). Similar to Company, LLP paying AMT can claim its credit for 10 assessment years. But as opposed to Company, LLP will not be liable to pay AMT on those income, which are exempt under provisions of Income Tax like long term capital gain under section 10 (38) and income from dividend under section 10 (34) etc

 

MAT

AMT

Section

115JB(1) Chapter – XII-B Section 115JC Chapter XII-BA

Provision

A Company is required to pay a minimum alternate Tax (MAT) on its book profit, if the income tax payable on the total income, as computed under the income tax act  in respect of any previous year relevant to the assessment year commencing on or after 1st April 2011, is less than the MAT. Where the regular tax payable for a previous year by a limited liability partnership is less than the alternate minimum tax payable for such previous year, the adjusted total income shall be deemed to be the total income of such limited liability partnership and LLP shall be liable to pay income tax on such total income.

“Adjusted total income" shall be total income as increased by :

the deductions claimed under any section included in chapter VI-A C (deductions in respect of certain income

and

deductions claimed under section 10AA (Deduction available to SEZ units).

Regular Tax means the tax payable under the income tax act for LLPs excluding the provisions of chapter 115JC.

 

Rate

18.5% + Surcharge (5%) +Education Cess (3%)  i.e. 20% 18.5% +Education Cess (3%) i.e 19.05%

(Surcharge is not applicable on Limited Liability Partnership)

Tax Credit

The tax credit to be allowed shall be the difference of the Minimum Alternate tax paid for any assessment year and the amount of tax payable by the assessee on his total income computed in accordance with the other provisions of this Act.

The tax credit is allowed to the extent of the excess of the alternate minimum tax paid over the regular income tax.

Carrry Forward  of Tax Credit

Tax credit will be carried forward for a maximum period of 10 years from the year in which such credit arose. Tax credit will be carried forward for a maximum period of 10 years from the year in which such credit arose.

 

 

source : https://www.llponline.in/tax_llp.php



 5 Replies

Devendran Ramaiyan

Devendran Ramaiyan (Asst. Manager Audit)     29 January 2012

A very useful comaprison

CA Revati Galgali

CA Revati Galgali (B.com ACA DipIFR(ACCA) CS(Exe))     01 February 2012

Thanks :)

sjain

sjain (Pursing CA Final)     22 June 2012

Is Alternate Minimum Tax Applicable to individual Also ? Plz Reply

thayappa

thayappa (Asst.Mgr)     03 July 2012

good presentation

Kunal

Kunal (chartered accountant)     03 August 2012

It is further provided that the provisions of AMT under Chapter XII-BA shall not apply to an individual or a Hindu undivided family or an association of persons or a body of individuals (whether incorporated or not) or an artificial juridical person referred to in section 2(31)(vii) if the adjusted total income of such person does not exceed twenty lakh rupees.

Read more: https://www.simpletaxindia.net/2012/03/alternate-minimum-tax-amt-on-all.html#ixzz22VP1hTUR

 

 

I don't think above is applicable for Nov 2012 as this amendment will be applicable from 1st april 2013.

For Nov 2012, just remember AMT is applicable only to companies and LLPs. It is not applicable to Individuals.


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