MAT

[velayutham panchatcharam]

Could you please tell me the applicability of MAT for SEZ unit in detail.

[Rama Krishana]

As per the provisons of section 115(JB)(6), SEZ units are not required to pay MAT (minimum alternate tax). This provision specifically exempts SEZ units from MAT. But, there is no such exclusion of SEZ from MAT under clause 104 of the DTC Bill, 2010 read with second schedule of DTC.

[CAGOPALJI AGRAWAL]

I endorse the view of Mr. Rama Krishna.

AI Summary

SEZ unit MAT exemption under current law contrasts with its omission in the proposed direct tax code draft.
Under the current statutory framework SEZ units are excluded from liability to MAT pursuant to the MAT exemption provision cited by the query respondent, whereas the draft Direct Tax Code provision referenced does not contain a corresponding exclusion for SEZ units, creating a divergence between the present MAT exemption and the proposed code's treatment of SEZ entities.