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    Question

    Company turnover ₹20Cr, taxable income ₹2Cr. MAT

    liability? (MAT rate 15%)
    A ₹30L Correct Answer Incorrect Answer
    B ₹45L Correct Answer Incorrect Answer
    C ₹60L Correct Answer Incorrect Answer
    D ₹75L Correct Answer Incorrect Answer

    Solution

    MAT = 15% of book profits. Assuming book profits = taxable income, MAT = 15% of ₹2Cr = ₹30L. Normal tax @25% = ₹50L. Higher of normal tax or MAT applies.

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