by Audit Analyst | Jan 9, 2026 | Minimum Alternate Tax
Nature of Inter-Company Transactions Inter-company transactions refer to dealings between companies under common control or ownership. These include sales, purchases, loans, services, royalty, or management fees. Such transactions must be recorded at arm’s length in...
by Audit Analyst | Jan 9, 2026 | Minimum Alternate Tax
Nature of Research and Development Expenses Research and development (R&D) expenses refer to costs incurred in innovation, design, and product development. They may include salaries, materials, technical consultancy, and trial costs. These expenses are recorded in...
by Audit Analyst | Jan 9, 2026 | Minimum Alternate Tax
Understanding Double Taxation under MAT Double taxation occurs when the same income is taxed more than once. MAT is levied when a company pays less tax under normal provisions but shows book profit. It does not tax the same income twice in the same year under two...
by Audit Analyst | Jan 9, 2026 | Minimum Alternate Tax
Binding Nature of Book Profit Courts have consistently held that book profit under MAT must be based on audited financial statements. Tax authorities cannot alter book profits unless there is a fraud or misrepresentation. Financial statements approved under company...
by Audit Analyst | Jan 9, 2026 | Minimum Alternate Tax
Nature of Equity Valuation Changes Changes in equity valuation arise from fair value adjustments in investments held in shares. These adjustments may be due to market fluctuations, revaluation, or impairment. Under Ind AS, such changes are often recorded through Other...
