FTS No. 96370/2015
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
Dated 11th May, 2015
PCCIT(International Taxation), Delhi
CCIT(International Taxation), Mumbai
CCIT(International Taxation), Bengaluru
Sub: Imposition of Minimum Alternate Tax (MAT) on foreign companies particularly FIIs.
Finance Minister has, while responding to the discussions on the Finance Bill in Rajya Sabha on 7th May, 2015, announced constitution of a Committee headed by Justice A.P. Shah to look into, inter alia, the issue of MAT on FIIs. The Committee is expected to give its report on this issue expeditiously.
In the light of FM’s announcement, no coercive action be taken for recovery of demand already raised by invoking provisions of MAT in the cases for foreign companies. Issue of fresh notices for reopening of cases as also completion of assessment should also be put on hold unless the case is getting barred by limitation.
This issues with the approval of Chairperson, CBDT