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 Units Exempt from MAT Under Section 115(JB)(6), But Not in Clause 104 of DTC Bill 2010. A query was raised regarding the applicability of Minimum Alternate Tax (MAT) for Special Economic Zone (SEZ) units. One respondent clarified that under section 115(JB)(6), SEZ units are exempt from paying MAT. However, this exemption is not present in clause 104 of the Direct Tax Code (DTC) Bill, 2010. Another participant agreed with this interpretation, confirming the lack of MAT exemption for SEZ units under the DTC Bill.