Now with all the rules and regulations coming up, the tax laws in the country have also tightened its hold on the people as well as corporations. Now the question we all think of how do we understand the concept of taxation and how do we get rid of paying taxes? Well the usual answer you’ll get from any other person is to carry out charitable activities to get out of paying these taxes that are imposed on us. Now we do know the usual direct and indirect tax but what is this new emergence of the concept of Minimum Alternate Tax (MAT).
Well this tax first came out in the year of 1997-98; this taxation law was included in the Companies Act. But now that we think about it, isn’t it supposed to be included in the Income Tax Law? Before the introduction of this tax law, the companies didn’t pay the government its dues. They used to show the profit and the loss statement and then the distribution of the dividends. They used to file the papers for nil income or negative income and thus these companies were conceptualized as zero tax companies. The Income Tax levies a lot of reductions and exemptions in the personal income and thus this leads to companies to get away with not paying taxes.
Now because of all of these exemptions and the corporations not paying taxes, the government came out with a new law and included this in the Companies Act stating that all the companies that show a little bit of profits in their books are liable and responsible to pay the minimum alternate tax that was charged at 18.5%. With this law coming into existence, the companies started paying taxes but the companies that are levied from this tax are the ones that are dealing in the infrastructure and power industry.
The way you do business has changed over the years and the taxation laws have been more stringent than ever and the mistakes you make while filing the documents or paying the taxes can really be a burden on you. Corpus Juris is a legal consultancy firm that has a team of professionals that have been dealing in this industry for a long time. All your documentation and filing procedures can be done easier with us.
Minimum Alternate Tax
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Minimum alternate tax ….makes ur work more easier..it is helpful and understood..