Mat Full Form In Business Taxation

Under mat such companies are made liable to pay to the government by deeming a certain percentage of their book profit as taxable income.

Mat full form in business taxation. What does mat mean. Top mat abbreviation related to tax. Form 730 if you are in the business of accepting wagers or conducting a wagering pool or lottery you may be liable for the federal excise tax on wagering. Mat or minimum alternate tax is a provision in direct tax laws to limit tax exemptions availed by companies so that they pay at least a minimum amount of corporate tax to the government.

But if at the same time provisions of mat also applies then can this deduction can be claimed because in mat we have to calculate tax payble by normal method which would be 0 in this type of business as 100 deduction allowed and then 18 5 of book profit. The there is a difference between two profits i e. What does mat stand for in tax. Tax mat abbreviation meaning defined here.

Mat stands for minimum alternate tax and amt stands for alternate minimum tax. Initially the concept of mat was introduced for companies and progressively it has been made applicable to all other taxpayers in the form of amt. Regular profit and book profit. Minimum alternate tax mat is a tax effectively introduced in india by the finance act of 1987 vide section 115j of the income tax act 1961 it act to facilitate the taxation of zero tax companies i e those companies which show zero or negligible income to avoid tax.

Use form 730 to figure the tax on the wagers you receive. Please look for them carefully. Therefore to counter this as system of mat was introduced. What does mat mean.

The key reason for introduction of mat is to ensure minimum levels of taxation for all domestic and foreign companies in india. Possible mat meaning as an acronym abbreviation shorthand or slang term vary from category to category. In this part you can gain knowledge about various provisions relating to mat and amt. It was felt that due to various concession provided in tax laws big corporate groups become zero tax companies.

We know 500 definitions for mat abbreviation or acronym in 8 categories. All acronyms 556 airports locations 3 business finance 14 common 16 government military 38. Sir if any company is engaged in bio degradable business to which section 80jja applies then the deduction will be 100 of such income. Basically companies that are popularly known as zero tax companies show profits as per the companies act but minimise tax outgo as they display income that is zero or negative under the.