MAT

In simple terms it means-

Tax on net profit of the company at precribed rates.

Mr. Rana,

MAT means Minimum Alternate Tax. A company has to pay minimum that amount of tax, whether its tax burden on its profit is equal to it or not. In other words, A company must bear that minimum amount of tax burden, besides it can take credit against it. For details, read Sec.115JB of income tax act.

Thank you Mr. NUKUL & Mr. SURAJ.