Provision For Mat

Report to be obtained in all cases irrespective of the fact that company pays mat or not since mat liability can be ascertained.

Provision for mat. Minimum alternative tax is payable under the income tax act. The accountant has estimated current year s tax provision to be 250 000 whereas the provision for december 2015 was 300 000. Medications used in mat are approved by the food and drug administration fda and mat programs are clinically driven and tailored to meet each patient s needs. Report of a accountant for mat.

Various provisions relating to mat and amt. Provision of mat minimum alternate tax for payment of tax by certain companies section 115jb calculation of book profits for the purpose of mat section 115jb tax credit in respect of tax paid on deemed income under mat provisions section 115jaa amounts expressively allowed as deduction section 30 to 37 section 40a of income tax act. The above entry is just a normal provision for the direct taxes payable in this case in the form of mat. If during a year a company has paid tax liability as per mat it is entitled to claim credit of excess of mat paid over the normal tax liability in the following year s.

The tax year ends by june every year. Kampire dior is preparing financial statements for the year ended december 2016. The concept of mat was introduced to target those companies that make huge profits and pay the dividend to their shareholders but pay no minimal tax under the normal provisions of the income tax act by taking advantage of the various deductions and exemptions allowed under the act. First of all we will understand the provisions of mat and thereafter the provisions of amt.

Mat a brief introduction. Report from ca to be furnished electronically as per rule 12 2 in form 29b to certify book profits are computed as per sec 115jb. Under over provision for tax. But payment of mat would give the company a benefit.

Mat or minimum alternate tax is a provision in direct tax laws to limit tax exemptions availed by companies so that they mandatorily pay a minimum amount of tax to the government. One can find provisions relating to carry forward and adjustment of mat credit in section 115jaa. The amount of mat credit can be set off only in the year in which the company is liable to pay tax as per the normal provisions contained in the act and such tax is in excess of mat for that year. Therefore mat credit provisions ensure that the company will always pay a minimum tax called mat.

As per section 115jb all companies are required to pay corporate tax at least equal to the higher of the following. Medication assisted treatment mat is the use of medications in combination with counseling and behavioral therapies to provide a whole patient approach to the treatment of substance use disorders.