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Mat

srikumar (audit staff) (1203 Points)

05 November 2013

dear sir ,

what is Minumum alternate tax (MAT)? which purpose govt introduced this system ? tax rate is 18.5% , in this concept cess is should taken or not taken? explain the above concept breifly ...pls ....

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3 Replies

Yash Sheth (Student CA Final ) (26 Points)
Replied 05 November 2013

MAT is applicable to Comapnies where as Alternate Minimum Tax (AMT) is applicable to organisations other than companies.. I am not sure about the rate of MAT you can wait for others to reply. . MAT is applicable to the companies on the Bookprofit. Tax payable is higher of Mat or Normal Income tax rate for companies which is 30.9 % Higher of these two will be payable.. Mat paid is available for credit as well.. Wait for seniors to reply to your post

Satyajit Singh (Company Secretary) (34 Points)
Replied 05 November 2013

Effective rate of Mat including Surcharge is 18.5% + 5%surcharge + 3 EC & SHEC ----- 20.00775% and not including surcharge 18.5% + 3%Ec & Shec -- 19.055%

Satyajit Singh (Company Secretary) (34 Points)
Replied 05 November 2013

Where in case in company the income tax payable on the total income as computed under this act in respect of any previous year is less than 18.5% of its book profit such book profit shall be deemed to be total income of the assessee and the tax payable by the assessee on the total income shall be the amount of income tax at the rate of 18.5%