MAT on FIIs: Shah panel holds meet with Tax Dept

The high-level Justice A P Shah panel, set up to look into the levy of MAT on FIIs on Tuesday held consultations with officials of the tax department. 

The committee constituted in May has already met various industry chambers to elicit their views on the controversy related to levying Minimum Alternate Tax (MAT) on FIIs earnings. 

The three-member committee, which includes former Chief Economic Advisor Ashok Lahiri and Chartered accountant Girish Ahuja, is scheduled to meet on July 13 to deliberate on comments which it has received from various stakeholders. 

The revenue department, according to sources, is of the view that MAT is not applicable on FIIs and the notices were sent to them following a verdict by the Authority of Advance Ruling (AAR). 

In 2012, the AAR directed Castleton to pay MAT in India on their book profits when it transferred shares from a Mauritius entity to a Singapore entity. 

Assocham, in its representation to <g data-gr-id="19">committee</g> said, that government should issue a clarification that MAT provisions were never intended and do not apply to FIIs/FPIs.