by Audit Analyst | Jan 9, 2026 | Minimum Alternate Tax
Understanding Dormant Companies A dormant company is one that has no significant financial transactions during a financial year. It may be registered but not engaged in any business activity or income generation. The Companies Act allows voluntary dormant status for...
by Audit Analyst | Jan 9, 2026 | Minimum Alternate Tax
Annual Assessment Basis MAT applicability is evaluated independently for each assessment year. It depends on the book profit reported in the audited financial statements. If the income tax payable under normal provisions is less than 15% of book profit, MAT becomes...
by Audit Analyst | Jan 9, 2026 | Minimum Alternate Tax
Nature of Asset Retirement Obligation Asset Retirement Obligation (ARO) refers to the expected future cost of dismantling or restoring a site. It typically arises in industries like mining, oil & gas, and power generation. The provision is recorded as a liability...
by Audit Analyst | Jan 9, 2026 | Minimum Alternate Tax
Meaning of Interest Waiver An interest waiver refers to the cancellation of interest obligations by a lender. It may arise through restructuring, settlement, or compromise of loan terms. The waived interest may have been earlier recognized as an expense. It is treated...
by Audit Analyst | Jan 9, 2026 | Minimum Alternate Tax
Nature of Royalty Income Royalty income refers to payments received for the use of intellectual property or technical know-how. It may include software licenses, patents, trademarks, copyrights, or mining rights. Such income is accounted as revenue in the Profit and...
