Justice AP Shah Committee has expressed his views to the finance ministry that the MAT shouldn’t be imposed on Foreign Institutional Investors (FIIs) for the period preceding April 1, 2015. According to 2015 budget which was proposed in February,- the government had exempted foreign portfolio investors (FPIs) from MAT starting April 1, 2015, but had not made the clarification whether it will have retrospective effect or not.
The issue arose as the tax department has sent notices to 68 foreign institutional investors (FIIs) demanding Rs 603 crore as MAT dues for previous years.
Composition of Committee:
- Head: Retired Judge AP Shah
- The committee was composed of 3 members –
- Justice Ajit Prakash Shah who was the Chairman,
- Dr. Girish Ahuja
- Dr. Ashok Lahiri.
What is MAT?
MAT is a way of making companies pay minimum amount of tax. It is applicable to all companies except those engaged in infrastructure and power sectors. The rate of MAT is 18.5% (plus surcharge and cess as applicable) on book profit. However, foreign companies with income sources in India are liable under MAT. The MAT paid can be carried forward and set-off (adjustment) against regular tax payable during the subsequent five-year period subject to certain conditions.
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Who is the Finance Minister Of India?
