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Applicability of mat

Dipak Davariya (Proprietor) (50 Points)

27 August 2011

Sir,

I want to know that a Private limied Company which commence the business as on 02/08/2004 in SEZ and claiming deduction u/s. 10A. Now in F.Y. 2010 - 2011 being 7th year of incorporation. I want to know that whether MAT u/s.115JB application and Tax is Payable under MAT or it is exempt. I have read that MAT is applicble from the A.Y. 2007 - 2008 ON BOOK PROFIT of the company claimig deduction u/s. 10A and taxis payable under MAT. Please guide me in this matter so that i can take necessary action further and guide to my client.

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1 Replies

SUHAS MITRA (ARTICLE ASSITANT) (54 Points)
Replied 28 August 2011

115JB(6) The provisions of this section shall not apply to the income accrued or arising on or after the 1st day of April, 2005 from any business carried on, or services rendered, by an entrepreneur or a Developer, in a Unit or Special Economic Zone, as the case may be.]

The following proviso shall be inserted after sub-section (6) of section 115JB by the Finance Act, 2011, w.e.f. 1-4-2012 :

Provided that the provisions of this sub-section shall cease to have effect in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 2012.

INCOME EARNED U/S 10A SHALL TAXED U/S 115JB