FM's tax cuts: Reduction in MAT to benefit IT companies in Gift City

They were to pay 18.5 per cent MAT so far, but will now have to pay 15 per cent MAT

Companies providing IT-enabled services in Gift city will benefit following today's announcement on the  reduction in Minimum Alternative Tax. Union Finance Minister Nirmala Sitharaman today reduced the rate of Minimum Alternate Tax has from existing 18.5 per cent to 15 per cent.

Gift City, situated at Gandhinagar in Gujarat, was formed as a Finance Special Economic Zone (FSEZ) and is an International Financial Services Centre. Hence the MAT applicable there for financial services units is nine per cent, which is a concessional rate. However, according to a Gift City official, IT and IT-enabled Services units numbering around 40 in Gift