Business Q&A

Question:
what is MAT tax ? where it is applied? where will the sensex market go?

Answer:
You have asked two different questions:
A) What is mat? Well MAt means Minimum Alternate Tax. The provision is applied on Companies. It says that even if a company may not have taxable income under I T Act , it still have to pay tax on the profit computed in prescribed manner if the company has profit under companies Act. The tax has to be paid at the rate of 10% now (7.5% )on Book Profit.
You should also understand why this MAT came into being. Reliance Industries is a very good example. In late nineties, RIL was having huge profits even then it was not paying taxes because the total income computed under I T Act was always a loss. That was because of high Depreciation on plants and machinery on ongoing projects.
So that became a too; in many a profitable companies to lower the taxes. The govt then brought MAT.

B) As far as the Sensex rise is concerned, only God knows where will it go. But as the market and world thinks, it will go higher and higher.

Resource related business question and answer:

The Tribune, Chandigarh, India - Business

... in the capital market is now overdue as the price earning ratio of Sensex ... National Council of Applied ... in the rates of MAT and services tax could have affected the market ...

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The Tribune, Chandigarh, India - Business

This order was likely to go to Khadi ... 115JB relating to Minimum Alternate Tax (MAT ... I N spite of its volatility, the stock market continues to move down. On August 9, the Sensex ...

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