MAT Rate in case of unit located in International Financial Services Centre - Section 115JB(7) - Income Tax - Ready Reckoner - Income Tax

Section 115JB(7) - MAT Rate in case of unit located in International Financial Services Centre An International Financial Services Centre is an institution which deals with financial services, financial products and financial transaction which are undertaken on an international level. Notwithstanding anything contained in section 115JB(1), where the assessee referred to therein, is a unit located in an International Financial Services Centre and derives its income solely in convertible foreign exchange, the provisions of section 115JB(1) shall have the effect as if for the words eighteen and one-half per cent. wherever occurring in that sub-section, the words 9% had been substituted. NOTES:- International Financial services Centre shall have the meaning as assigned to it u/s 2(q) of Special Economic Zone Act, 2005. Convertible foreign exchange means a foreign exchange which is for the time being treated by the Reserve Bank of India as convertible foreign exchange for the purpose of FEMA, 1999 and Rules made thereunder. Thus, for a Company located in IFSC, the rate of MAT is 9% instead of 15%.