Rs 75,000-crore minimum alternate tax credit dilemma grips India Inc

Fifteen heavyweight companies have accumulated MAT credit in excess of Rs 1,000 crore each

Vast swathes of Corporate India may not be in a hurry to shift to the new corporation tax regime. Ninety-nine companies, which also include some unlisted ones, have more than Rs 100 crore each of minimum alternate tax (MAT) credit on their books, cumulatively adding up to Rs 75,000 crore. Of these, 15 heavyweights such as NTPC, Reliance Industries, Bharti Airtel, Vedanta, and TCS have MAT credit in excess of Rs 1,000 crore each. 

“By utilising MAT credit, many companies will be able to bring down their effective tax cost to 17.47 per cent from 25.17 per cent (under the