mat

HI PRADEEP,

MAT US 115JB OF INCOME TAX IS INTRODUED FOR THE PROTECTION OF REVENUE TO THE GOVT.IT WAS FOUND THAT BEFORE INTRODUCTION OF MAT MANY COMPANIES SUCH AS RELIANCE ,TATA ETC ARE EARNING HUGE PROFITS AND DISTRIBUTING GOOD AMOUNT OF DIVIDEND TO THERE SHAREHOLDERS ,STILL NOT PAYING TAX TO THE GOVT.

THE PROFITS AND LOSS A/C AS ADOPT IN THE AGM SHOWES EITHER BOOK PROFIT/LOSS ..SO THE INCOME TAX AUTHORITIES BRINH THE CONCEPT OF MAT UNDER WHICH COMPANIES ARE LIABLE TO PAY MINIMUM AMOUNT OF TAX AS ADJUSTED WITH BOOK PROFIT AS PRESCRIBED IN THE SEC 115JB OF THE ACT.

THIS IS BACKGROUN OF MAT FOR CACLUATION AND ADJSTMENT FOR ITEMS PLEASE GO THROUG AFROESAID SECTION...

IF YOU NEED FURTHER CLASSIFICATION PLEASE POST THE SAME.

AS YOU ARE STUDENT OF CA FINAL IT SHOULD BE CLEARE FROM THE POINT OF VIEW OF EXAMINTATION ALSO

THANKS

Explained in a very good way