Committee recommends inapplicability of MAT provisions to FIIs/FPIs for the Period Prior to 01 April 2015
The Committee on Direct Tax matters chaired by Justice A.P. Shah has recommended that section 115JB of the Income-tax Act may be amended to clarify the inapplicability of MAT provisions to FIIs/FPIs. Alternatively, the Committee has suggested that a Circular may be issued clarifying the inapplicability of MAT provisions to FIIs/FPIs.The Committee was constituted with the initial mandate to examine the matter relating to levy of MAT on FIIs/FPIs for the period prior to 01 April 2015. The Committee has submitted its final report on applicability of MAT on FIIs/FPIs for the period prior to 01 April 2015 to the Government on 25 August 2015.
The Government has accepted the recommendation of the Committee to clarify the inapplicability of MAT to FIIs/FPIs and has decided that an appropriate amendment to the Income-tax Act will be carried out. Through the amendment the Government proposes to clarify that MAT provisions will not be applicable to FIIs/FPIs not having a place of business/ permanent establishment in India, for the period prior to 01 April 2015. Pending such amendment, CBDT will convey to the field formations the decision of the Government to accept the recommendation.
Powered by Capital Market - Live News