MAT ( minimum alternative tax)

1st its applicable to company
2nd take the net profit from p&l account prepared as per company act,2013 then adjust sum expenses and income which will not be part for computation of Mvat..

then whatever profit come after such adj...

apply rate on that ie, 18.5%

finally compare with tax as per normal tax prov.

Logic is that due to many deductions are available in income tax profit gets reduced even though profit in books showing high that's why this provision introduced.
18.5 % of book profit after only adjustments given under income tax act