Imposition of Minimum Alternate Tax (MAT) on foreign companies particularly FIIs
Finance Minister has, while responding to the discussions on the Finance Bill in Rajya Sabha on 7th May, 2015 announced constitution of a Committee headed by Justice A.P. Shah to look into, inter alia, the issue of MAT on FIIs. The Committee is expected to give its report on this issue expeditiously.
In the light of FM’s announcement,officers dealing with International Taxes have been advised that no coercive action be taken for recovery of demand already raised by invoking provisions of MAT in the cases for foreign companies. Issues of fresh notices for reopening of cases as also completion of assessment should also be put on hold unless the case is getting barred by limitation.