Imposition of Minimum Alternate Tax (MAT) on foreign companies particularly FIIs. - Income Tax - FTS No. 96370/2015

FTS No. 96370/2015 Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes Dated 11 th May, 2015 To, 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 (Dr. B.K. Sinha) CIT(C S), CBDT