Applicability of MAT to foreign investors

by Siddhartha Iyer

Minimum Alternate Tax, or MAT was introduced in the year 1996, with the intention of taxing zero tax companies, and has been the subject of debate ever since. It has recently caught the attention of the media, once the matter had reached the Supreme Court. It was introduced in the year 1996, at a low rate of 7.5% of an entities “book profits” and has slowly and steadily risen to 18% of the book profits of an entity, as the minimum tax they are obliged to pay.

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