Minimum Alternate Tax

MAT impact on financials under IND AS

Income Tax - 1. Background With companies having net worth exceeding INR 500 crores required to converge their financials with the Indian Accounting Standards (IND AS) for financial years beginning on or after 1 April, 2016, the Minimum Alternate Tax (MAT) implications for section 115JB of the Income Tax Act, 1961 (ITA) were a big mystery. The Finance...

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AMT Provisions under Income Tax Act 1961( AY 2017-18)

Income Tax - As per section 115JC of Income Tax Act , 1961 , AMT is Alternate Minimum Tax computed on the adjusted total income of a non corporate assessee....

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Remove proposed restriction on carry forward of MAT/ AMT credit: ICAI

Income Tax - Section 115JAA(2A) - Restriction on carry forward of MAT/AMT credit and claim of FTC in relation to taxes under dispute - Restriction to be removed...

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Carry forward & set off of MAT credit where ten year period has expired on or before AY 2016-17

Income Tax - Clarity regarding carry forward and set off of MAT credit in cases where the ten year period has expired on or before AY 2016-17 but the fifteen year period has still not expired needed....

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Treatment of IND AS Adjustments under MAT

Income Tax - Financials for FY 2016-17 will be prepared as per IND AS and the presentation will be done as per Division II of Schedule III as per Companies Act 013. The computation of book profit under MAT depends on accounting profit. The financial have become complex due to initial impact of IND AS and recurring impact due to adoption of IND AS...

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ASSOCHAM advocates MAT exemption for sick companies under debt restructuring

Income Tax - Apex Industry body ASSOCHAM has advocated continuation of the exemption from MAT (Minimum Alternative Tax) by the insertion of a suitable substitution of or addition to the Income Tax Act in respect of the restructuring under the insolvency & banking code 2016....

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Framework for computation of book profit for MAT levy on Ind AS compliant companies

Income Tax - On the basis of the recommendations of the Committee on MAT-Ind AS, the Central Government has notified 10 ICDS vide Notification No. S.O.892(E) dated 31st March, 2015. With the approval of the Finance Minister , the above said Committee was also requested to suggest the framework for computation of book profit for the purposes of levy of...

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MAT may be made inapplicable to foreign Cos having no PE in India from 1st April, 2001

Income Tax - Government Decides to Amend Income-Tax Act 1961 so that with Effect from 1st April, 2001, the Provisions of Section 115JB Shall Not be Applicable to a Foreign Company If the Foreign Company is a Resident of a Country Having DTAA with India and Such Foreign Company Does Not have a Permanent Establishment within the Definition of the Term i...

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CBDT advises not to Pursue Recovery of Outstanding Demands in MAT cases of FIIS/FPIS

Income Tax - Instruction No. 9/2015 Following the Acceptance of the Recommendation of the Justice A.P.Shah Committee by the Government, CBDT Advises its Field Authorities to keep in Abeyance, for the Time being, the Pending Assessment Proceedings in Cases of FIIS/FPIS Involving the Applicability of Minimum Alternate Tax (MAT) on FIIS/FPIS for the Peri...

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Justice A.P. Shah Report on Applicability of MAT on FIIs / FPIs

Income Tax - The MAT provisions were subsequently reintroduced in 1996 by the Finance Act (No. 2) of 1996, through Section 115JA; and then by the Finance Act of 2000, which replaced Section 115JA with Section 115JB. Section 115JB...

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Retention money cannot be treated as Income till performance of contractual obligations

D.C.I.T. VS. M/s. McNally Bharat Engineering Co.Ltd.(ITAT Kolkata) - Retention money is not in the nature of income till such time the contractual obligations are fully performed to the satisfaction of the customer by the Assessee. Therefore the retention money cannot be regarded as income even for the purpose of book profits u/s.115JB of the Act though credited in t...

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MAT not payable on Capital receipts on forfeiture of share warrants

DCIT Vs M/s. Binani Industries Ltd. (ITAT Kolkata) - ITAT held that it is not in dispute that the receipt representing forfeiture of share warrants is only a capital receipt & not chargeable to tax. However, the same has been duly credited in the profit and loss account as an extraordinary item....

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MAT credit to be calculated after surcharge and Cess

M/s Virtusa (India) Pvt. Ltd. Vs DCIT (ITAT Hyderabad) - As per sec.115JB (2A), the tax credit shall be the difference of tax paid for any AY under 115JB(1) and the amount of tax payable on his total income computed in accordance with the other provisions of this Act....

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Whenever order of Re-assessment is passed, Period of Limitation will start from the date of Re-assessment order and not from Original Assessment order

Rastriya Ispat Nigam Limited Vs Asst. Commissioner of Income Tax (Telangana and Andhra Pradesh High Court) - Rastriya Ispat Nigam Limited v. ACIT In this case the writ petition was filed by the Assessee in which the AP High Court while dismissing the writ petition held that whenever an order is made under the re-assessment...

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MAT provisions in s. 115JB do not apply to foreign companies

The Bank of Tokyo-Mitsubishi UFJ Ltd Vs ADIT (ITAT Delhi) - The MAT provisions were introduced in statute by the Finance Bill, 1996 and the Finance Minister while introducing this provision observed that the company engaged in the power and infrastructure sector will remain exempt from the levy of MAT....

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Reg. Penalty in cases where despite addition tax payable under MAT Provisions is higher than under Normal Provisions

Circular No. 25/2015 - Income Tax - (31/12/2015) - CIRCULAR NO. 25/2015 Penalty u/s 271(1)(c) wherein additions/disallowances made under normal provisions of the Income Tax Act, 1961 but tax levied under MAT provisions u/s 115JB/115JC, for cases prior to A.Y. 2016-17-reg.- Section 115JB of the Act is a special provision for levy of Minimum Alternate...

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CBDT advises not to Pursue Recovery of Outstanding Demands in MAT cases of FIIS/FPIS

Instruction No. 9/2015 - (02/09/2015) - Instruction No. 9/2015 Following the Acceptance of the Recommendation of the Justice A.P.Shah Committee by the Government, CBDT Advises its Field Authorities to keep in Abeyance, for the Time being, the Pending Assessment Proceedings in Cases of FIIS/FPIS Involving the Applicability of Minimum Alter...

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Committee to Examine Matter Relating to Levy of MAT on FIIS

F.No.1 33/27/201 5-T PL - (20/05/2015) - The Union Finance Minister Shri Arun Jaitley, while responding to the discussions on the Finance Bill in Rajya Sabha on 7th May, 2015, had announced the constitution of a Committee headed by Justice A.P. Shah to look into the issue of Minimum Alternate Tax (MAT) on...

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CBDT directives on MAT on foreign companies & FIIs

FTS No. 96370/2015 - (11/05/2015) - Finance Minister has, while responding to the discussions on the Finance Bill in Rajya Sabha on 7th May, 2015, announced constitution of a Committee headed by Justice A.P. Shah to look into, inter alia, the issue of MAT on FIIs. The Committee is expected to give its report on this issue expeditiousl...

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Recent Posts in "Minimum Alternate Tax"

MAT impact on financials under IND AS

1. Background With companies having net worth exceeding INR 500 crores required to converge their financials with the Indian Accounting Standards (IND AS) for financial years beginning on or after 1 April, 2016, the Minimum Alternate Tax (MAT) implications for section 115JB of the Income Tax Act, 1961 (ITA) were a big mystery. The Finance...

Read More
Posted Under: Income Tax |

AMT Provisions under Income Tax Act 1961( AY 2017-18)

As per section 115JC of Income Tax Act , 1961 , AMT is Alternate Minimum Tax computed on the adjusted total income of a non corporate assessee....

Read More

ASSOCHAM advocates MAT exemption for sick companies under debt restructuring

Apex Industry body ASSOCHAM has advocated continuation of the exemption from MAT (Minimum Alternative Tax) by the insertion of a suitable substitution of or addition to the Income Tax Act in respect of the restructuring under the insolvency & banking code 2016....

Read More
Posted Under: Income Tax |

Retention money cannot be treated as Income till performance of contractual obligations

D.C.I.T. VS. M/s. McNally Bharat Engineering Co.Ltd.(ITAT Kolkata)

Retention money is not in the nature of income till such time the contractual obligations are fully performed to the satisfaction of the customer by the Assessee. Therefore the retention money cannot be regarded as income even for the purpose of book profits u/s.115JB of the Act though credited in the profit and loss account […]...

Read More

Remove proposed restriction on carry forward of MAT/ AMT credit: ICAI

Section 115JAA(2A) - Restriction on carry forward of MAT/AMT credit and claim of FTC in relation to taxes under dispute - Restriction to be removed...

Read More
Posted Under: Income Tax | ,

Carry forward & set off of MAT credit where ten year period has expired on or before AY 2016-17

Clarity regarding carry forward and set off of MAT credit in cases where the ten year period has expired on or before AY 2016-17 but the fifteen year period has still not expired needed....

Read More
Posted Under: Income Tax |

Treatment of IND AS Adjustments under MAT

Financials for FY 2016-17 will be prepared as per IND AS and the presentation will be done as per Division II of Schedule III as per Companies Act 013. The computation of book profit under MAT depends on accounting profit. The financial have become complex due to initial impact of IND AS and recurring impact due to adoption of IND AS...

Read More
Posted Under: Income Tax |

Budget 2017 Rationalises MAT Provisions with Ind-AS

Central Government notified the Indian Accounting Standards (Ind AS) which are converged with International Financial Reporting Standards(IFRS) and prescribed the Companies( Indian Accounting Standards) Rules, 2015 which laid down a roadmap for implementation of these Ind AS....

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Posted Under: Income Tax |

Budget proposes carry forward of MAT / AMT credit for 15 Years

With a view to provide relief to the assessees paying MAT, it is proposed to amend section 115JAA to provide that the tax credit determined under this section can be carried forward up to fifteenth assessment years immediately succeeding the assessment years in which such tax credit becomes allowable....

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Posted Under: Income Tax |

Computation of Book Profit for Ind AS Compliant Companies

Central Board of Direct Taxes (CBDT) constituted MAT- Ind AS Committee to suggest framework for computation of book profit for purposes of levy of Minimum Alternate Tax (MAT) under Section 115JB of the Income-tax Act, 1961 for Indian Accounting Standards (Ind AS) compliant companies in the year of adoption and thereafter....

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Posted Under: Income Tax |
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