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What is the Full Form of MAT

(i) MAT: Minimum Alternate Tax

MAT stands for Minimum Alternate Tax. It is a direct tax first imposed in 1997-98. It is set on the 'zero tax' companies on the book/ earned profits of such companies at the rate of 18.5%. Under this approach, section 115JB was introduced in the Income Tax Act in 1997-98 to bring zero-tax companies under the income tax provision.

MAT Full Form

MAT helps the government make companies pay a minimum amount of tax. It applies to all companies except those engaged in infrastructure and power sectors, free trade zones, charitable activities, and venture and angel funds. Those foreign companies which are having any kind of income sources in India also come under this and are liable to pay MAT.

In 2015, the government rationalized the MAT provisions for Foreign Financial Institutions; now, they do not need to pay MAT on their profits from capital gains on transactions in securities (which are liable lower tax rates).

All companies, including private or public or India-based or foreign companies, are required to pay Minimum Alternate Tax. The objective of the MAT is to limit tax exemptions avoided by companies so that they pay mandatorily/ compulsory a minimum amount of tax to the government.

Corporates take advantage of various provisions of the Income Tax Act by claiming exemptions, deductions, depreciations, etc., to reduce their tax liability, and by this, the companies used to show very less profit because of which they do not use to fall under the tax bracket to pay tax. To encounter all such issues, MAT was introduced.


Let us understand this through an example. Suppose a company has booked a profit of Rs. 10 Lakh. However, after claiming the deductions, exemptions and depreciation, its 'gross taxable income' comes down to Rs. 6 Lakh, and its taxable income becomes Rs. 4 Lakh. In this case, the applicable income tax would be around Rs. 1.2 lakh (if the rate of income tax is 30 per cent flat). But, the company will pay a MAT of Rs. 1.85 lakh (18.5% on its 'book profit' of Rs. 10 lakh). Simply put, the concerned company needs to pay the tax, which is higher. Thus, the tax to be paid will be Rs. 1.85 lakh.

(ii) MAT: Management Aptitude Test

MAT also stands for Management Aptitude Test. It is a national-level entrance examination for the top management colleges of India. All the processes involved in applying for the examination are online, and interested candidates from any corner of the nation can visit the official website of the MAT and fill out the application form online.

The mode of the test generally includes three formats, namely paper-based (offline), computer-based test (online) and internet-based test (IBT)

MAT Full Form


  • The eligibility criteria for the candidates to appear in the examination are that the candidate should be a graduate in any discipline. However, final-year candidates can also apply.
  • There is no age restriction, and the candidates can apply any number of times.
  • The nationality of the candidate should be Indian; he/ she should be a citizen of India.

Conduction Body of the Examination

The conducting body of the examination is the All India Management Association (AIMA).


The stream of the examination is Management. Additionally, the duration of the examination is of 2 hours 30 minutes (150 minutes).

Official Website


Interested candidates can visit this website to get all the details related to this examination, like the admission process, dates of the examination, results, etc.

Examination Pattern

MAT exam is conducted in different mediums under different sections. It consists of separate questions and is conducted with a maximum of 200 marks. Let us know the different components of the MAT exam:


The medium of the paper is English, which means it comes only in English and not in other languages.


There are a total of five sections which come in the examination. They are as follows:

  1. Indian and Global Environment
  2. Data Analysis and Sufficiency
  3. Mathematical Skills
  4. Language and Comprehension
  5. Intelligence and Critical Reasoning

The total number of questions asked in each section is 40. Also, there is no time limit fixed for particular sections, which is beneficial for the students.

Types of Questions

All the questions come in the form of multiple-choice questions (MCQ).

(iii) MAT: Moving Annual Turnover

MAT Full Form

MAT stands for Moving Annual Turnover. Moving annual turnover in particular months means the cumulative sales value for 12 months in the domestic market. To calculate MAT, we add the sales value of that particular month for which we want to calculate the MAT and subtract the corresponding sales of the same month but of the previous year. For instance, Feb 2014 to Jan 2015 sales are called MAT Feb 2015 sales.

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