Introduction Taxes can be difficult to understand let alone their accounting and reporting. However, accounting for taxes is one aspect that needs to be given more time in order to ensure that correct treatment is given to the taxes paid and/or payable. One matter that i personally feel that most of us would not be dealing with on a regular basis is the accounting for Minimum Alternate Tax ('MAT') and MAT credit. Without going into the mechanics of computation of MAT, in the following paragraphs i would attempt on throwing some light on the accounting aspect of MAT and its credit. Basics 1. MAT is computed at 18.5% of the book profits computed in accordance with the provisions of section 115JB of the Income Tax Act, 1961. 2. Income tax payable computed according to the normal provisions of the income tax is compared with the MAT calculated according to the provisions of section 115JB of the Income tax Act, 1961. 3. If, MAT payable > Normal Income tax payable the...