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
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ADD
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1
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Income-tax
paid or payable, and the provision thereof, including
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2
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Transfer
to Reserves (Other than Section 33AC w.e.f. AY 2003-2004)
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3
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Amount
set aside to meet unascertained liabilities,
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4
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Provision
for losses of Subsidiaries,
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5
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Dividends
Proposed or Paid,
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6
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Expenditure
relatable to Income (eligible for deduction from Book Profit) exempt under
section 10 or 11 or 12
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7
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Amount
of depreciation, including amount of depreciation on Revalued amount of Fixed
Asset,
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8
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Amount
of deferred tax and the provision thereof,
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9
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Amount
or amounts set aside as provision for diminution in the value of any asset.
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(LESS)
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Only, if credited to the Profit and Loss
Account
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1
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Amount
withdrawn from Reserves or Provisions from those created before 01.04.1997
without debiting Profit and Loss Account,
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2
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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,
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3
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Income
exempt under section 10 [other than 10(38), 10(23G)] or 11 or 12,
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4
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Amount
of Deferred Tax
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5
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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
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Others
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6
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Amount
of depreciation, excluding amount of depreciation on Revalued amount of Fixed
Asset,
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7
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Lower of the following
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Brought
Forward Loss (as per Books) ? Loss does not include Depreciation
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Unabsorbed
Depreciation (as per Books)
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8
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Profits
eligible for deduction under section 80HHC or 80HHE or 80HHF, upto Assessment
Year 2005-06
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9
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Amount
of Profits of Sick Industrial Company, during the period of sickness.
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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)
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Partnership Firm
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Particulars
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AY 2013-14
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AY 2014-15
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Tax Rate
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30%
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30%
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Surcharge (total income > Rs. 1 Crore)
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NIL
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10%
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AMT (u/s 115JC)
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18.50%
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NIL
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LLP
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Particulars
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AY 2013-14
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AY 2014-15
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Tax Rate
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30%
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30%
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Surcharge (total income > Rs. 1 Crore)
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NIL
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10%
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AMT (u/s 115JC)
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18.50%
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18.50%
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Education Cess & SHEC
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3%
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3%
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Domestic Company
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Particulars
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AY 2013-14
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AY 2014-15
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Tax Rate
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30%
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30%
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Surcharge (total income Rs. 1-10 Crore)
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5%
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5%
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Surcharge (total income > Rs. 10 Crore)
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5%
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10%
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MAT (u/s 115JB) *
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18.50%
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18.50%
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Surcharge on MAT (total income > Rs. 1 Crore)
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NIL
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5%
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Education Cess & SHEC
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3%
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3%
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Dividend Distribution Tax -u/s 115-O
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15%
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15%
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Surcharge
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5%
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10%
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Education Cess & SHEC
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3%
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3%
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