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Monday, May 23, 2011

MAT (Minimum Alternate Tax) on LLP w.e.f. A.Y. 2012-13


From the A.Y.2012-13, MAT is applicable on Limited Liability Partnership Firm.

Steps for Calculating Tax liability of LLP

  1. Calculate regular income tax of LLP

  1. Calculate Adjusted Profits

Particulars

Amount (Rs.)
Total Income of LLP

xxx
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(i) Deduction claimed U/s 80 H to 80 RRB

xxx
(ii) Deduction claimed U/s 10AA

xxx
Adjusted Profits

xxx
                 
     
                                                                             
  1. Calculate MAT on Adjusted total Income @ 19.055% (18.5% + Ed.Cess @ 2% + SHE Cess @ 1%)

  1. If the Tax as per MAT is less than regular tax then the Tax payable by LLP will be regular Tax and if the Tax as per MAT is greater than regular tax then the Tax payable by LLP will be the amount of tax as per MAT.

  1. The excess amount of MAT over regular tax can be claimed as MAT credit in subsequent years

                  MAT Credit = Tax as per MAT – Regular Tax

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