BUDGET 2014 - 15: Minimum Alternate Tax - Companies

Minimum Alternate Tax (MAT) / Alternate Minimum Tax For Companies

(1) Minimum Alternate Tax (MAT) is levied at 18.5% of the adjusted book profit for companies where income-tax payable on the total income (according to the normal provisions of the Act) is less than 18.5% of the adjusted book profit

(2) A 5% surcharge is applicable in case of domestic companies, if the adjusted book profit exceeds Rs. 10,000,000 but does not exceed Rs. 100,000,000. Marginal relief available

(3) A 10% surcharge is applicable in case of domestic companies, if the adjusted book profit exceeds INR100,000,000. Marginal relief available

(4) A 3% education cess is applicable on income-tax (inclusive of surcharge, if any)

(5) MAT credit is available for ten (10) years.

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