MAT is levied on the principle that everyone participating in the economy must contribute to the exchequer. Which of the following statements is/are correct for Minimum Alternate Tax?
Code:
MAT is levied on the principle that everyone participating in the economy must contribute to the exchequer. Which of the following statements is/are correct for Minimum Alternate Tax?
Code:
The correct option is C Only 1
MAT was levied on all companies to address inequity in taxation of corporate taxpayers. Minimum Alternate Tax (MAT) has been levied on developers of Special Economic Zones (SEZs) and units operating in SEZs with effect from 1st April, 2012 vide Finance Act, 2011. Representations have been received from the business community and others regarding restoration of exemption from payment of MAT to SEZ units and developers.
The Ministry of Commerce amended the Income-tax Act through Special Economic Zones Act, 2005. Sub-section (6) as inserted by SEZ Act, 2005 n section 115JB of the Income-tax Act provided that MAT shall not apply to the income accruing or arising on or after 01.04.2005 from any business carried on or services rendered by an entrepreneur or a developer, in a unit or a Special Economic Zone. There was no sunset date for this exemption. MAT was first introduced into the Income-tax Act, 1961 (ITA) in 1987. An entirely new Chapter XIIB was introduced into the ITA vide Finance Act, 1987. In the Finance Act, 1990, MAT was abolished. However, it was reintroduced in Finance Bill, 1996 with effect from Assessment Year 1997-98.
Only 1
MAT was levied on all companies to address inequity in taxation of corporate taxpayers. Minimum Alternate Tax (MAT) has been levied on developers of Special Economic Zones (SEZs) and units operating in SEZs with effect from 1st April, 2012 vide Finance Act, 2011. Representations have been received from the business community and others regarding restoration of exemption from payment of MAT to SEZ units and developers.
The Ministry of Commerce amended the Income-tax Act through Special Economic Zones Act, 2005. Sub-section (6) as inserted by SEZ Act, 2005 n section 115JB of the Income-tax Act provided that MAT shall not apply to the income accruing or arising on or after 01.04.2005 from any business carried on or services rendered by an entrepreneur or a developer, in a unit or a Special Economic Zone. There was no sunset date for this exemption. MAT was first introduced into the Income-tax Act, 1961 (ITA) in 1987. An entirely new Chapter XIIB was introduced into the ITA vide Finance Act, 1987. In the Finance Act, 1990, MAT was abolished. However, it was reintroduced in Finance Bill, 1996 with effect from Assessment Year 1997-98.
