Minimum Alternate Tax

Minimum Alternate Tax (MAT) & Alternate Minimum Tax (AMT)

Income Tax - MAT stands for Minimum Alternate Tax and AMT stands for Alternate Minimum Tax. Initially the concept of MAT was introduced for companies and progressively it has been made applicable to all other taxpayers in the form of AMT. In this part you can gain knowledge about various provisions relating to MAT and AMT. First of all we will underst...

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Importance of Minimum Alternate Tax In Tackling Tax Avoidance

Income Tax - MAT or minimum alternative tax refers to a tax paid to by a company in advance. We should note that companies must pay tax according to the provisions of the income tax act, the profit and loss account is calculated as per companies act,2013. So prior to MAT what happened was; companies having profits used […]...

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MAT (Minimum Alternative Tax Section 115JB)

Income Tax - Minimum Alternative Tax (Section 115JB) MAT Stands for Minimum Alternative Tax, he objective of introduction of MAT is to bring into the tax net “zero tax companies” which in spite of having earned substantial book profits and having paid handsome dividends, do not pay Any tax due to various tax concessions and incentives prov...

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Minimum Alternate Tax

Income Tax - MEANING: Minimum Alternate Tax or MAT is a provision that is in direct tax laws which is for companies, it is the provision for limit the tax exemptions which is availed by the companies. The provision requires that the company shall not avail more exemption and they should pay at least minimum amount of tax […]...

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टैक्स हैवन देशों पर लगाम कसेगा ग्लोबल मिनिमम कार्पोरेट टैक्स

Income Tax - हाल में ही आर्थिक सहयोग और विकास संगठन ( ओईसीडी) के 136 देशों ने हस्ताक्षर कर ग्लोबल मिनिमम कार्पोरेट टैक्स दर लगाने का रास्ता साफ कर ...

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Cabinet approves Taxation Laws (Amendment) Bill, 2019

Income Tax - In order to attract fresh investment in manufacturing and provide boost to 'Make-in India' initiative of the Government, another provision was inserted to the IT Act, to provide that a domestic manufacturing company set up on or after 1st October, 2019 and which commences manufacturing by 31st March, 2023, may opt to pay tax at 15% plus s...

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Clarify on MAT u/s 115JB: ICAI

Income Tax - The computation of book profit under section 115JB is a complicated and vexed issue with diverse interpretations possible on various issues. These issues need to be clarified to reduce litigation before the appellate authorities, which is one of the aims of the Government....

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CBDT relaxes MAT provisions for companies facing Insolvency

Income Tax - Relaxation in the provisions relating to levy of Minimum Alternate Tax (MAT) in case of companies against whom an application for corporate insolvency resolution process has been admitted under the Insolvency and Bankruptcy Code, 2016 The existing provisions of section 115JB of the Income-tax Act, 1961 (‘the Act’), inter alia, provide...

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Relevant part of recommendations of MAT-Ind AS Committee’s Report

Income Tax - Relevant part of MAT-Ind AS Committee Report dated 17th June, 2017 containing recommendations regarding amendment to the provisions of the section 115JB of the Income-tax Act, 1961 in respect of Ind AS Compliant Companies....

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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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Receipt not in character of Income to not form part of book profit under Section 115JB

PCIT  Vs Krishi Rasayan Exports Pvt. Ltd (Calcutta High Court) - PCIT-4 Vs Krishi Rasayan Exports Pvt. Ltd (Calcutta High Court) Whether the interest subsidy and excise refund would be treated as capital receipt or revenue receipt for the purpose of computation of book profit under the provision of Section 115JB of the Income-Tax Act, 1961 ? Identical issue was a...

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Sales tax & excise duty subsidy is capital receipts & not taxable

ACIT Vs Genus Electrotech Limited (ITAT Delhi) - ACIT Vs Genus Electrotech Limited (ITAT Delhi) Held that sales tax incentive subsidy and excise duty incentive are in the nature of capital receipts and thus not chargeable to tax as regular income as well as income u/s 115JB for computation of book profit. Facts- In the order u/s 154, AO noted that...

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Section 14A disallowance not considerable in Section 115JB book profit computation

Sundaram Finance Holdings Limited Vs ACIT (ITAT Chennai) - ITAT held that no disallowance of expenses can be made in respect of exempt income by invoking the provisions of s. 14A of the Act r/w Rule 8D of the Rules while computing book profit u/s. 115JB of the Act....

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MAT Credit eligible on Surcharge, Education Cess & Additional Surcharges

Adurjee & Bros Pvt. Ltd. Vs DCIT (ITAT Pune) - MAT credit u/s. 115JA cannot be denied on Surcharge, education cess and additional surcharge - secondary and higher education cess...

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Addition of disallowed prior period expenses not permitted in book profit computation

Gujarat Chemical Port Terminal Co. Ltd Vs DCIT (ITAT Ahmedabad) - Prior period expenses charged to profit and loss account cannot be deducted from profit of year for computing book profit under Section 115JB ...

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CBDT clarification on MAT Credit on exercise of section 115BAA option

Circular No. 29/2019-Income Tax - (02/10/2019) - Representations have been received from the stakeholders seeking clarification on following issues relating to exercise of option under section 115BAA: (a) Allowability of brought forward loss on account of additional depreciation; and (b) Allowability of brought forward MAT credit....

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CBDT notifies revised Form no. 29B for MAT audit with Annexures

Notification No. 80/2017-Income Tax [G.S.R. 1028(E)] - (18/08/2017) - Details of the amount required to be increased or decreased in accordance with sub-section (2A) of section 115JB- [Applicable only where the financial statements of the company are drawn up in compliance with the Indian Accounting Standards specified in Annexure to the Companies (Indian Accounting S...

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FAQs on computation of book profit to levy MAT for Ind AS companies

Circular Number 24/2017-Income Tax - (25/07/2017) - Clarifications with FAQs on computation of book profit for the 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....

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Issues on implementation of MAT provisions for Ind AS companies

NA - (25/07/2017) - CBDT press release on Issues arising from the implementation of Minimum Alternate Tax (MAT) provisions relating to Indian Accounting Standards (Ind AS) compliant companies....

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Modification in Circular related to Tax Effect for Appeal Filing

F.No.279/Misc./M-142/2007-ITJ(Pt.) - (14/07/2017) - References are being received by the Board that in certain cases appellate authorities are dismissing appeals without going into the merits of the case by relying on the definition of `tax effect' as defined in Circular No. 21/2015, which prescribes the monetary limit for filing appeals before vario...

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Recent Posts in "Minimum Alternate Tax"

Receipt not in character of Income to not form part of book profit under Section 115JB

PCIT  Vs Krishi Rasayan Exports Pvt. Ltd (Calcutta High Court)

PCIT-4 Vs Krishi Rasayan Exports Pvt. Ltd (Calcutta High Court) Whether the interest subsidy and excise refund would be treated as capital receipt or revenue receipt for the purpose of computation of book profit under the provision of Section 115JB of the Income-Tax Act, 1961 ? Identical issue was also considered by this Court in [&hellip...

Read More

Sales tax & excise duty subsidy is capital receipts & not taxable

ACIT Vs Genus Electrotech Limited (ITAT Delhi)

ACIT Vs Genus Electrotech Limited (ITAT Delhi) Held that sales tax incentive subsidy and excise duty incentive are in the nature of capital receipts and thus not chargeable to tax as regular income as well as income u/s 115JB for computation of book profit. Facts- In the order u/s 154, AO noted that assessee had […]...

Read More

Section 14A disallowance not considerable in Section 115JB book profit computation

Sundaram Finance Holdings Limited Vs ACIT (ITAT Chennai)

ITAT held that no disallowance of expenses can be made in respect of exempt income by invoking the provisions of s. 14A of the Act r/w Rule 8D of the Rules while computing book profit u/s. 115JB of the Act....

Read More

MAT Credit eligible on Surcharge, Education Cess & Additional Surcharges

Adurjee & Bros Pvt. Ltd. Vs DCIT (ITAT Pune)

MAT credit u/s. 115JA cannot be denied on Surcharge, education cess and additional surcharge - secondary and higher education cess...

Read More

Addition of disallowed prior period expenses not permitted in book profit computation

Gujarat Chemical Port Terminal Co. Ltd Vs DCIT (ITAT Ahmedabad)

Prior period expenses charged to profit and loss account cannot be deducted from profit of year for computing book profit under Section 115JB ...

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Carbon Credits is capital receipt not exigible to tax under Normal & MAT

DCIT Vs A.D. Hydro Power Ltd. (ITAT Delhi)

DCIT Vs A.D. Hydro Power Ltd. (ITAT Delhi) ITAT held that Carbon Credits is capital receipt not exigible to tax under normal provisions of the Act and also while computing the book profits under Section 115JB of Income Tax Act, 1961. FULL TEXT OF THE ORDER OF ITAT DELHI 1. These appeals are filed by […]...

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Section 14A disallowance not considerable for Book Profit computation

Tega Industries Limited Vs DCIT (ITAT Kolkata)

Tega Industries Limited Vs DCIT (ITAT Kolkata) Assessee has contended that disallowance under section 14A ought not to have been considered for computing the book profit under section 115JB of the Act, we find merit in the assessee’s contention. Special Bench of Delhi Tribunal in the case of ACIT –vs.- Vireet Investment Pvt. Limited (...

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Minimum Alternate Tax (MAT) & Alternate Minimum Tax (AMT)

MAT stands for Minimum Alternate Tax and AMT stands for Alternate Minimum Tax. Initially the concept of MAT was introduced for companies and progressively it has been made applicable to all other taxpayers in the form of AMT. In this part you can gain knowledge about various provisions relating to MAT and AMT. First of all we will underst...

Read More
Posted Under: Income Tax | ,

Importance of Minimum Alternate Tax In Tackling Tax Avoidance

MAT or minimum alternative tax refers to a tax paid to by a company in advance. We should note that companies must pay tax according to the provisions of the income tax act, the profit and loss account is calculated as per companies act,2013. So prior to MAT what happened was; companies having profits used […]...

Read More
Posted Under: Income Tax |

MAT (Minimum Alternative Tax Section 115JB)

Minimum Alternative Tax (Section 115JB) MAT Stands for Minimum Alternative Tax, he objective of introduction of MAT is to bring into the tax net “zero tax companies” which in spite of having earned substantial book profits and having paid handsome dividends, do not pay Any tax due to various tax concessions and incentives prov...

Read More
Posted Under: Income Tax |

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