MAT Vs AMT

Minimum Alternate Tax (MAT) is levied on companies as per section 115JB of the Indian Income Tax Act, 1961.

Alternate Minimum Tax (AMT) is levied on limited liability partnerships (LLPs) as per section 115JC.

Minimum Alternate Tax u/s 115JB Income Tax Act India

If the income-tax payable by a Company, on the total income as computed under this Act in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 2011, is less than 18.5% of its book profit,

• such book profit shall be deemed to be the total income of the Company, and
• the tax payable by the Company on such total income shall be the amount of income-tax at the rate of 18.5% of the book profit.

Computation of Book profit:.

Net Profit as per Profit and Loss account
ADD
1	Income-tax paid or payable, and the provision thereof, including
2	Transfer to Reserves (Other than Section 33AC w.e.f. AY 2003-2004)
3	Amount set aside to meet unascertained liabilities,
4	Provision for losses of Subsidiaries,
5	Dividends Proposed or Paid,
6	Expenditure relatable to Income (eligible for deduction from Book Profit) exempt under section 10 or 11 or 12
7	Amount of depreciation, including amount of depreciation on Revalued amount of Fixed Asset,
8	Amount of deferred tax and the provision thereof,
9	Amount or amounts set aside as provision for diminution in the value of any asset.
(LESS)
	Only, if credited to the Profit and Loss Account
1	Amount withdrawn from Reserves or Provisions from those created before 01.04.1997 without debiting Profit and Loss Account,
2	Amount withdrawn from reserves created on or after 01.04.1997 if such amount was allowed to be charged to Net Profit for the purpose of Section 115JB or Section 115JA,
3	Income exempt under section 10 [other than 10(38), 10(23G)] or 11 or 12,
4	Amount of Deferred Tax
5	Amount withdrawn from Revaluation Reserve to the extent it does not exceed the depreciation on revalued amount of Fixed Asset charged to Profit and Loss Account
	Others
6	Amount of depreciation, excluding amount of depreciation on Revalued amount of Fixed Asset,
7	Lower of the following	Brought Forward Loss (as per Books) ? Loss does not include Depreciation
		Unabsorbed Depreciation (as per Books)
8	Profits eligible for deduction under section 80HHC or 80HHE or 80HHF, upto Assessment Year 2005-06
9	Amount of Profits of Sick Industrial Company, during the period of sickness.

Alternate Minimum Tax u/s 115JC Income Tax Act India:

When the AMT is Applicable?

Where the regular income-tax payable for a previous year by a limited liability partnership is less than the AMT payable for such previous year,

•  the adjusted total income shall be deemed to be the total income of the limited liability partnership for such previous year and
• it shall be liable to pay income-tax on such total income at the rate

Adjusted total income is the total income before giving effect to this Chapter as increased by, 

• Deductions claimed, if any, under any section included in Chapter VI-A under the heading Deductions in respect of certain incomes; and
• Deduction claimed, if any, under section 10AA.

 Every limited liability partnership to which this section applies shall obtain a report, from an accountant certifying that the adjusted total income and the AMT have been computed in accordance with the provisions of this Chapter.

Tax Credit for AMT u/s 115JD

The tax credit of an assessment year to be allowed shall be the excess of AMT paid over the regular income-tax payable of that year.

·         The amount of tax credit shall be carried forward and set off. But such carry forward shall not be allowed beyond the tenth assessment year immediately succeeding the assessment year for which tax credit becomes allowable.

·         In any assessment year in which the regular income-tax exceeds the AMT, the tax credit shall be allowed to be set off to the extent of the excess of regular income-tax over the AMT and the balance of the tax credit, if any, shall be carried forward.

Slab Rates(AY 14-15)

Partnership Firm
Particulars	AY 2013-14	AY 2014-15
Tax Rate	30%	30%
Surcharge (total income > Rs. 1 Crore)	NIL	10%
AMT (u/s 115JC)	18.50%	NIL
LLP
Particulars	AY 2013-14	AY 2014-15
Tax Rate	30%	30%
Surcharge (total income > Rs. 1 Crore)	NIL	10%
AMT (u/s 115JC)	18.50%	18.50%
Education Cess & SHEC	3%	3%
Domestic Company
Particulars	AY 2013-14	AY 2014-15
Tax Rate	30%	30%
Surcharge (total income Rs. 1-10 Crore)	5%	5%
Surcharge (total income > Rs. 10 Crore)	5%	10%
MAT (u/s 115JB) *	18.50%	18.50%
Surcharge on MAT (total income > Rs. 1 Crore)	NIL	5%
Education Cess & SHEC	3%	3%
Dividend Distribution Tax  -u/s 115-O	15%	15%
Surcharge	5%	10%
Education Cess & SHEC	3%	3%