If normal tax payable is more than the MAT, then the provisions of MAT are not applicable. However is it necessary for the company to obtain certificate in form 29B from the Chartered accountant . Radha Krishna, Hyderabad
MAT in its current version is covered u/s 115JB of the I T Act which starts as under
115JB. (1) Notwithstanding anything contained in any other provision of this Act, where in the case of an assessee, being a company, the income-tax, payable on the total income as computed under this Act in respect of any previous year relevant to the assessment year commencing on or after the 1st day of April, 2007, is less than ten per cent of its book profit, such book profit shall be deemed to be the total income of the assessee and the tax payable by the assessee on such total income shall be the amount of income-tax at the rate of en per cent.
It is clear that section 115JB does not applies to every company , but only those companies which pays less than 10 5 of the book profit computed in accordance with Explanation to section 115JB of the I T Act .
In my opinion, if section 115JB is not applicable on a company, it is not required to comply with subsection 4 of section 115JB because the said subsection starts with the sentence “ Every company to which this section applies, shall furnish…”
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