What is MAT Credit?

If a company pays MAT in a year because the MAT amount is higher than its regular tax liability, the excess amount paid can be carried forward as a "MAT credit". This credit can be used to set off regular tax liability in future years for up to 15 years.

Startup Example: A company pays ₹5 Lakhs as MAT while its regular tax was only ₹3 Lakhs. It gets a MAT credit of ₹2 Lakhs, which it can use to reduce its tax payment in a future year when its regular tax is higher than MAT.

We help in optimizing tax liabilities using all available credits.