Domestic companies will get some relief as they will have to pay lower surcharge of 7.5 per cent on their tax liabilities, but the burden of Minimum Alternate Tax (MAT) will go up to 18 per cent from 15 per cent from April 1.
"The existing surcharge of 10 per cent is proposed to be reduced to 7.5 per cent," the memorandum to the Finance Bill, 2010 said.
However, from April, the companies will have to pay a higher Minimum Alternate Tax.
"There is a big surprise and disappointment on MAT. Decrease in surcharge would be eaten by increase in the MAT rate," Ficci President and J K Paper Managing Director Harsh Pati Singhania said.
