The government today said it will soon take a decision on the Justice A P Shah Committee report on applicability of minimum alternate tax (MAT) on foreign investors, an issue which had riled FIIs.
The high-level Shah Committee today submitted to Finance Minister Arun Jaitley a 66-page report, the content of which has not been disclosed.
"We have just received the report. The government will examine, consider the report and take a decision. I cannot specify the date, but I can say that the decision will be taken soon and the government will not sit over the report. The government will take a decision on the matter as soon as possible," Revenue Secretary Shaktikanta Das told reporters.
The report comes against the backdrop of foreign investors dragging the government to court over applicability of MAT on capital gains made by them. Foreign institutional investors (FIIs) are hoping that the government will waive MAT prior to April 2015.
The government had in May appointed the Shah Committee to examine the matter relating to levy of MAT on FIIs prior to April 2015. The committee looked into all related legal provisions, judicial, quasi-judicial pronouncements and other relevant aspects.
"It's a unanimous report. We have received responses from industry, chartered accountant firms, CBDT and leading advocates," Shah said, adding that it would not be proper for him to disclose the content of the report.
The Supreme Court is hearing a petition filed by Castleton on levy of MAT while there is also another case on the same pending in the Bombay High Court.
"The Supreme Court hearing is still about 10-11 days away. We have time in between. We will go through the report. The course of action which the government will follow with regard to the Supreme Court hearing on August 4 can be decided in the next 10 days," Das said.
The Income Tax Department had sent notices to 68 FIIs demanding Rs 602.83 crore as MAT dues of the previous years. This has raked up a big controversy, with FIIs moving the higher court challenging the MAT demand.
Jaitley in Budget 2015-16 exempted FIIs from paying MAT with effect from April 1, 2015.
