Ganesh Subramainan V, SASTRA Deemed University
ABSTRACT
The Minimum Alternate Tax (MAT) is a critical aspect in the dynamic landscape of corporate tax planning, impacting the techniques used by corporations to optimize their tax payments. This article dives into the multidimensional impact of MAT on corporate tax planning, investigating its origins, evolution, and the tangled web it weaves inside firms' financial fabric. MAT, which was implemented to ensure that profitable firms contribute their fair part to the tax pool, has evolved over time, causing a rippling effect throughout several industries. As a tool meant to combat tax evasion, MAT involves a rethinking of traditional tax planning strategies. The article investigates the effects of MAT on corporate decision-making processes, revealing the delicate dance between profitability and tax responsibilities. Understanding the complexities of MAT is critical for firms seeking to achieve a harmonious balance between profitability and tax compliance as regulatory landscapes continue to shift. This article acts as a guidepost, leading practitioners, policymakers, and academics through the maze of MAT's impact on corporate tax planning, encouraging a better understanding of its role in creating the financial contours of modern enterprises.
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