AMN /
The government today accepted the Justice AP Shah committee report on the Minimum Alternative Tax, MAT on foreign institutional investors,FIIs. Addressing a press conference in New Delhi Finance Minister Arun Jaitley said government will not impose levy on FIIs prior to 1st April 2015. He said that report was considered at length by CBDT and revenue department. Mr jaitley said the report will be made public very soon. The Minister said the amendments to Sec 115 JB of IT Act would be required and expressed hope that the Act will be amended in the winter session of Parliament.
The Finance Minister, however, said that the Shah panel’s recommendations were applicable only for FIIs and FPIs and did not pertain to cases involving foreign direct investment (FDI). In May , the government set up a panel headed by Justice AP Shah to suggest ways to resolve the MAT dispute as well as some other tax issues. Tax authorities had issued MAT notices to foreign portfolio investors last year which claim of Rs 600 crore.