What Is Mat Tax

What is minimum alternative tax.

What is mat tax.

Normal tax rate applicable to an indian company is 30 plus cess and surcharge as applicable. My alabama taxes sign up you may now file your individual income tax return at my alabama taxes mat in order to file your return you will need a mat username and have access to your individual income tax account. Companies try to minimise giving taxes by taking advantage of depreciation deductions exemptions etc from the government. We apologize for the inconvenience.

Book profit of the company is rs. Mat a brief introduction. Mat is a way of making companies pay a minimum amount of tax. It was first introduced by the finance act 1987 and made effective from ay 1988 89.

Later it was withdrawn by the finance act 1990 but reintroduced again from 1 april 1997. My alabama taxes mat is the state s electronic filing and remittance system used today for the filing of state city and county sales use rental and lodgings taxes. Companies find various loop holes to avoid paying income tax by using several exemptions. Tax 30 on rs.

Mat is a tax levied under section 115jb of the income tax act 1961. I normal tax liability or ii mat. My alabama taxes my alabama taxes is currently unavailable. Please try again later.

Since october 1 2013 alabama retailers have been able to file and pay all city county sales use and rental taxes in mat the one spot to file. If you continue to receive this message please contact mat support. Minimum alternative tax is payable under the income tax act. As per section 115jb all companies are required to pay corporate tax at least equal to the higher of the following.

As per the concept of mat the tax liability of a company will be higher of the following two. So the government imposes a minimum alternate tax or mat as an advance. Mat or minimum alternate tax is a provision in direct tax laws to limit tax exemptions availed by companies so that they mandatorily pay a minimum amount of tax to the government. The concept of mat was introduced to target those companies that make huge profits and pay the dividend to their shareholders but pay no minimal tax under the normal provisions of the income tax act by taking advantage of the various deductions and exemptions allowed under the act.