DCS - Thy Tax Partner

Applicability of MAT:-         MAT is applicable to All Companies including the Foreign Companies. Analysis of provision of section 115JB:- Where in case of a company, the income tax payable on the Total Income as computed under the income tax act in respect of any previous year is less than 18.5% of its BOOK PROFIT, then such book profit shall be deemed to be the total income of the assessee and the tax payable on such total income shall be the amount of income tax at the rate of 18.5% . This income tax, further has to be enhance by Surcharge (as applicable) and education cess (@3%). In the simple words every company has to compute its income tax liability as per two sets of provisions. Following are the two sets of provisions: ·    Income tax computed as per normal provisions of income tax act. ·          ·  Income tax computed as per provision of section 115JB of income tax act. Meaning of Book Profit:- Book Profit means the net profit as shown