1-time aid for MTNL to meet MAT liability
19 Oct 2014 10:51 PM GMT
The government on Saturday approved a DoT proposal for providing one-time financial support to state-run telecom company MTNL for meeting liabilities arising from levy of minimum alternate tax (MAT). The Cabinet Committee on Economic Affairs (CCEA), which is headed by Prime Minister Narendra Modi, has given it approval to the proposal, an official statement said.
‘This decision will help MTNL keep floating in the highly competitive telecom sector. It will also help MTNL arrange finances to meet its basic financial commitments like operations and maintenance of their telecom network,’ it added. MTNL reported a book profit of Rs 2,348.49 crore for 2013-14, resulting in a MAT liability of Rs 492.26 crore. The objective is providing a one-time financial support to MTNL for MAT reimbursement.
‘This decision will help MTNL keep floating in the highly competitive telecom sector. It will also help MTNL arrange finances to meet its basic financial commitments like operations and maintenance of their telecom network,’ it added. MTNL reported a book profit of Rs 2,348.49 crore for 2013-14, resulting in a MAT liability of Rs 492.26 crore. The objective is providing a one-time financial support to MTNL for MAT reimbursement.
Next Story
