Mat Computation Pdf

The tribunal rejected the taxpayer s methodology and observed that though the taxpayer restricted the quantification of set off to lower of unabsorbed loss or unabsorbed.

Mat computation pdf.

Purpose of minimum alternate tax mat 2 profit and loss account is to be reduced by amount computation under the income tax act 1961 the act. Income tax payable shall be the higher of the following amounts. Considered in the computation should be from the start of the employee s maternity leave up to the day prior to the date of death. Mat size mat size deducted from point load in 3 in kns soil type value 2 73500 x 9 81 721 035 kns 721 0kns 300kn m2 2 40 m2 1 6m x 1 6m minimum a.

The tax computed by applying 15 plus surcharge and cess as applicable on book profit is called mat. Mat foundations introduction under normal conditions square and rectangular footings are economical for supporting columns and walls. The semester of contingency is april 1998 to sept. The other two will be placed on medium dense gravel dense gravel has a bearing value.

Tax on total income computed as per the normal provisions of the income tax act 30 on domestic companies and 40 on foreign companies. Before proceeding on how mat is calculated first provisions related to mat calculation is important to learn. Soil is compact ground gravel 100mm in depth covered in tar. Mat is levied at the rate of 9 plus surcharge and cess as applicable in case of a company.

A mat foundation also may be used to resist hydrostatic pressures or to bridge over small soft spots in the soil provided the mat is adequately reinforced. The starting point for mat computation is profit before other comprehensive income oci and not the total comprehensive income. Two outriggers will be placed here. Any loss arising out of fair value adjustments of financial instruments measured at fair value.

Computation of book profit is discussed in later part. Contingency august 5 1998 start of maternity leave august 1 1998 1. Summary of clarifications issued by the cbdt on the mat provisions applicable to ind as reporters. Avi wigderson mathematics and computation draft.

However under certain circumstances it may be desirable to construct a footing that supports a line of two or more columns. Although mat foundations are more difficult and more costly to design than individual spread footings they can be used effectively. The minimum alternative tax mat is a provision introduced in direct tax laws to limit the tax deductions exemptions otherwise available to taxpayers so that they pay a minimum amount of tax to the government.