Surcharge for MAT???

No, as  this tax is levied by state govt ,

so there is no surchagre & edu cess. would be added while calculatig MAVT

Sorry I had read MAT as MVAT

Dear Hari,

Yes Surcharge & education cess is applicable on the rate u/s 115JB i:e MAT..

Thankyou Mr.Amir...

completely agree with Mr.Amir

Surcharge & education cess is applicable - MAT..

Yes the above is correct. However for calculating MAT credit available for set off in future years no credit of surcharge and education cess payable is available.

Mr. Aditya, can u please tell the reason why surcharge and EC are not available as credit?? It is sounding a bit new to me.. no offences

MAT credit is allowable on the excess of MAT payable over Income Tax payable on normal rates. So only MAT credit of tax paid is allowable. Also for computing whether MAT is payable or normal income tax we compare gross MAT payable (i. e. before surcharge & education cess) with normal income tax payable.

It does not make any difference in tax calculation if the rates of surcharge and education cess remain same from year to year. However if surcharge payable in the year of company paying MAT and surcharge not payable in the year when the company is taking MAT credit then there is a difference in MAT paid and credit availed.

do u mean that only the rate mentioned by the slab in the finance bill is the income tax and the surcharge and EC part donot fall within the definition of Income tax??

Dear Amitk,

Aditya sir is rite that MAT credit is to be claimed before charging surcharge & education cess......

This thing can be confirmed if u look at ITR 6 where Surchage & Education cess is charged after claiming credit of MAT..................

Mr. Amitkk....

Aditya sir and Mr.Amir brother both are rite....

MAT credit is to be claimed before charging surcharge & education cess......

Surchage & Education cess will be charged only after claiming the credit of MAT.......

I also agree with your opinion bt where it is written in the Act or in rules???

What % are surcharge and education cess are applicable while computing mat?