What is the procedure for calculation of Minimum Alternate Tax?

Answer 1

In india when the taxable income as shown is less than 30% of book profit then MAT is to be paid. First of all calculations are made on the basis of regular computation by allowing all available exemptions, brought forward of losses etc.against the profit as shown in the P & L A/c and if the final taxable income is less than 30% of the book profit, MAT is charged on the income.

Answer 2

quickly i'm going to point seven factors: a million. each enterprise required to compute tax the two under the earnings tax and under sec a hundred and fifteen JB 2. earnings computed under the earnings tax is referred to as usual earnings and the tax under this methodology is referred to as usual tax 3. earnings computed under sec 115JB is referred to as e book earnings and the tax computed is referred to as MAT. 4. each year a enterprise required to compute the tax under the the two strategies and required to pay greater of those. 5. the enterprise which has paid the MAT in any year can carryforward to the subsequent next years to setoff against the tax criminal duty wherein it may pay the same old tax. 6. in spite of the indisputable fact that a enterprise isn't required to compute its e book earnings and pay the MAT interior the in year wherein it has its usual earnings itself “nil” or “loss” . as an occasion , while MAT has no longer been paid. however the MAT paid interior the faster years is eligilble to be carryforward. 7. There are some situations how plenty MAT could properly be carryforward and how plenty MAT could properly be used to sett off the tax. enterprise’s duty is to make particular compliance of the provisions of section 115JB is particularly the duty of the enterprise. for this reason, the enterprise ought to coach assertion of its criminal duty under section 115JB duly authenticated, giving info and the foundation of all the transformations made and publish the comparable to the accountant for verification and certification after such examination as he could deem ideal. the enterprise additionally should make accessible to the in contact ,all the books of account, information and different information as may well be deemed mandatory for finishing up the audit.