MAT

Question 1

MAT is applicable to?

Answer 1

Only to companies - including foreign govt and non govt company

Question 2

MAT section?

Answer 2

115JB

Question 3

Section 115JB, how to PAY TAX

Answer 3

1. Tax as per normal provisions of the income tax act
2. 15% of book profits

Whichever is higher

Question 4

Normal tax rate in case of company

Answer 4

Dom. Foreign
Tax rate 25/30% 35%
Sc. 7/12%. 2/5%
Hec. 4.%. 4%

Question 5

Mat calculation

Answer 5

15%. Of book profit
Sc 7/12 or 5/12
Hec 4%

Question 6

Mat for unit located in IFSC

Answer 6

Sec 115JB (7) located in IFSC and deriving income solely in foreign exchange then MAT at 9% instead of 15%