When is MAT Applicable.?
Also How do I Compute the MAT?
Can I Set off Mat Credit Against the tax Payable for the current year?
Is it true that if a company shows loss then MAT will Always be Applicable?
4 Replies
PRITAM JAIN, CA , CS
(Practising CA CS)
(398 Points)
Replied 22 May 2012
| Originally posted by : rushi | ||
 |
When is MAT Applicable.? Also How do I Compute the MAT? Can I Set off Mat Credit Against the tax Payable for the current year? Is it true that if a company shows loss then MAT will Always be Applicable? |
 |
It is the minimum tax that the company has to pay if the actual tax amount as per IT act is less than 18.5% (pls confirm the rate) of the Adjusted Book Profit.
MAT credit is available for set to an extent.
It is not necessary MAT will always applicable when co. is in loss.
CA Vanamala Phani Kumar
(Proprietor of M/s Vanamala and Co)
(972 Points)
Replied 22 May 2012
MAT introduced in Finance Act, 2000
From AY 2009-10
Minimum Alternate Tax (MAT) to be increased to 15 per cent of book profits from 10 per cent. The period allowed to carry forward the tax credit under MAT to be extended from seven years to ten years.
Rate increased to 18% from 15% from AY 2011-12.
ramidi santhosh
(Jr.Manager jsw steel ltd)
(62 Points)
Replied 07 November 2012
can anyone explain regarding minimum alternative tax?
in which case it is payable
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