The Central Board of Direct Taxes (CBDT) on 25 July released clarifications on computation of book profit for the purposes of levy of minimum alternate tax (MAT) for companies that comply with Indian Accounting Standards (Ind-AS). MAT is imposed on companies at the rate of 18.5% of the book profits if the income tax payable on the total income as computed under the Income Tax Act is less than 18.5% of its book profits.
The business law digest is compiled by Nishith Desai Associates (NDA). NDA is a research-based international law firm with offices in Mumbai, New Delhi, Bengaluru, Singapore, Silicon Valley and Munich. It specializes in strategic legal, regulatory and tax advice coupled with industry expertise in an integrated manner.
