what is the treatment of minimum alternate tax, and it's
calculation procedure
- 5 Answers
- 18871 Views
- HCL, I also Faced
- E-Mail Answers
Answer Posted / tax beginner
The Indian Income Tax Act contains large number of
exemptions from total income. Besides exemptions, there are
several deductions permitted from gross total income.
Further, depreciation allowable under the Income Tax Act is
not the same as required under the Companies Act. The
result of such exemptions, deductions, and other incentives
under the Income tax Act in the form of liberal rates of
depreciation is the emergence of Zero tax companies which
in spite of having high book profit are able to reduce
their taxable income to nil.
The system of minimum alternate tax has accordingly been
introduced under which a company is required to pay a
minimum tax of 7 % of the book profit in case the tax on
the total income computed under the normal provisions of
law works out to less than this amount [Sec 115JB].
So if Book Profit before Depreciation for a Construction
(Infrastructure) Company is for example Rs.7,00,000/- and
after claiming for Depreciation and other exemptions Gross
Taxable Income comes down to 1,50,000/-. The Tax works out
to be Rs.45,000/- (30%).
However MAT works out to be Rs.49,000/- (Rs.7,00,000/- @
7%). The Company has to pay the MAT of Rs.49,000/-
| Is This Answer Correct ? | 39 Yes | 13 No |
Post New Answer View All Answers
we are Rising contractors(Propritorship concern) and register with "mining of minerals" service. we rise the bills to mine owner (we do not add the service tax in bills) monthly. can we eligable for paid to service tax.
How do I get a C form with the bank Guarantee?
Kindly, tell me abount the WCT of U.P. material & labour supply for installment of lift in premises at Noida (U.P.), our lift supplier giving the bill in 90% material & 10% Labour & charged the up vat of 12.5% , Can we liable for WCT deductor ?
HOW TO FILE RETURN- SALARIED PERSON GETTING SALARY 6 MONTH FROM ONE & 6 MONTH ANOTHER COMPANY
Any one can mail soft copy of Balance sheet,Trading and profit and loss alc.of a small firm or small co for study
I am working at Himachal Pradesh, let me know cant i adjust entry tax in vat? if no then why or yes, please exlain.
how much TDS required in telecommunication services ? Any types of Telecommunication, provider or services receiver
If any new form open than we are able to deduct TDS on first year
Should WCT deduct on Invoice where VAT charged but service tax not charged as service tax is not applicable to concern vendor (vendor gross income under 10Lacs)?
accounting taxation
if the goods are purchased against H Form, is there any specified time limit winthin which they should be exported?; if yes then wat is that limit?
Rules for filling Income Tax return for an Individual ?
In TDS Challan, i had written the TAN No of my company wrongly and i file it to the Govt. what can i do now? is there any problem reg this? wat is my next step? shall i give any letter to TDS Circle in this regarding? how can i approach them? Kindly help me immdly with the procedure.
what Is the ITc Claimed. how to utilized the ITC.
Daily announced price of Gold. this price is included vat ya without vat. pls give me solution.
