Applicability of amt

whether AMT is applicable on overseas entities???(especially LLP)
Replies (1)

Alternate Minimum Tax (AMT) was introduced by the Finance Act, 2011 
w.e.f. 01.04.2012 on Limited Liability Partnerships (LLP). Later on by the FA 
2012 this has been extended to all assesses other than companies. For 
companies we find separate provisions for MAT. 
The applicability: 
The AMT will apply only to those assesses who prefer claim of exemption under 
section 10AA and deductions under Chapter VIA- C – in relation to certain 
incomes (except deduction u/s S.80P). 
 In case of individual, HUF, AOP and BOI further relaxation from AMT is provided 
if the adjusted total income does not exceed Rs. 20 lakh. 


Effective sections for AY 2013-14 which will be hit by AMT: 

Section 10AA- SEZ units. 
Sections of Chapter VIA- C: 
Many of deductions under Chapter VIA –C, have been phased out and only few 
are still in force. The effective deductions shall also have limited effective life and 
they will be phased out or become ineffective gradually over some years. 
The effective sections under which claims against certain incomes will be 
available for AY 2013-14 and which will be hit by provisions of AMT are as 
follows: 
Section 80-IA – infrastructure development 
Section 80-IAB – development of SEZ. 
Section 80 IB- certain industrial undertakings and enterprises . 
Section 80-IC- undertakings in certain special category states. 
Section 80-ID- hotel and convention centers in specified area. 
Section 80-IE- certain undertaking in North Eastern States. 
Section 80JJA- collection and processing of bio degradable waste. 
Section 80JJAA- employment of new workman. 
Section 80LA – offshore banking units and international financial service center. 
Section 80 QQB- certain royalty to authors of books. 
Section 80RRB – Royalty on patents. 

 

 

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