Government Accepts Shah Panel Report, MAT Not to be Levied on FIIs
Finance Minister Arun Jaitley on Tuesday announced that the government has accepted Justice AP Shah Panel's recommendations on not levying MAT on Foreign Institutional Investors.
A. Highlights of speech
Here are the highlights of his speech.
- Justice AP Shah Panel had submitted its report on MAT to government few weeks ago.
- Certain questions which were in the mind of the CBDT were put forth to the MAT committee.
- Justice AP Shah report on MAT to be made public soon.
- Shah panel gave recommendations regarding levy of MAT On FIIs prior To April 1, 2015.
- Have accepted the recommendations of the Justice Shah Panel on MAT.
- Hope to move amendment to Tax Act in winter session of Parliament or whenever the next session is.
- AP Shah report says MAT on capital gains made by FIIs was not applicable.
- What applies post April 2015, that is no MAT on capital gain on FIIs, will also apply on pre-April 2015.
B. Recommendations of AP Shah Pane Committee
In view of the findings and upon a considered deliberation, we would like to make the following recommendations to the Government:
(i) To bring an amendment to Section 115JB of the Income Tax Act, 1961 clarifying the complete inapplicability of the MAT provisions to FIIs/FPIs; or
(ii) CBDT may issue a circular clarifying the complete inapplicability of the MAT provisions to FIIs/FPIs.