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New Delhi : The forthcoming Budget is unlikely to reduce the minimum alternate tax (MAT), which is the minimum tax that companies pay on book profit, according to leading tax experts.
"It is unlikely that any major structural changes will be brought in the MAT provisions this year's Budget," said KPMG executive director Vikas Vasal, when asked whether there is any possibility of the Government reducing the MAT rate as is being advocated by the industry.
The MAT, which was raised from 10 per cent to 15 per cent last year, is imposed on profitable companies which do not fall under the corporate tax net because of various exemptions. However, the proposed direct taxes code (DTC) suggests only a 2-per cent MAT, but that on the gross assets and not on book profit.
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