APPLICABILITY OF MAT PROVISION

Applicable to only companies except those engaged in infrastructure and power sectors [section 80-IA].

Income arising from Free Trade Zones (FTZs) [section 10A], 100 per cent Export-Oriented Undertakings (EOUs) [section 10B], charitable activities [sections 11 and 12], investment by a venture capital company and other exempted incomes [section 10] are excluded from the purview of the alternate tax.

if tax payable on total income is less than 7.5% of book profit, the tax payable under this provision shall be 7.5% of book profit.

It is applicable to companies only.

It is appliacable if tax payable total income is less than 15% (From F. Y. 2010 - 11 - 18%) of book profit as computed u/s 115JB, the tax payable under this provision shall be 15% (From F. Y. 2010 - 11 - 18%) of book profit.

Minimum Alternate Tax (MAT) is payable by companies.

The MAT rate for A.Y. 11-12 is 18%.

Though there has been a consistent demand from companies from various sectors for its removal, the Government continues with this tax.

MAT applicables to company. 

tax payable by campany is higher of below

1. 30% on net profit ( as per profit and loss a/c)

2. 18% on book profit ( profit cal as per 115jb)

APPLICABILITY---MAT is applicable only to companies(excluding infrastructure co. and power sector co And co. under SEZ.)

AT WHAT RATE---18%+surcharge(if applicable)+cess

CRITERIA---30/40% of profit(Depend on nature of co.)or18%of turnover Whiver is higher.

APPLICABILITY---MAT is applicable only to companies(excluding infrastructure co. and power sector co And co. under SEZ.)

AT WHAT RATE---18%+surcharge(if applicable)+cess

CRITERIA---30/40% of profit(Depend on nature of co.)or18%of book profit Whiver is higher.

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