The high level committee, announced by Finance Minister Arun Jaitley today, would give its first recommendations on the issue of imposition of MAT on foreign investors, Finance Ministry said today.
"Issue of MAT on FIIs being referred (to the Committee) with a request to give report expeditiously," Revenue Secretary Shaktikanta Das told PTI. The government will soon notify the Terms of Reference of the Committee, he said. "Cases of individual companies will not be referred.
Following a decision of the Authority of Advance Ruling (AAR), Income Tax department had slapped notices on 68 foreign portfolio investors (FPI) saying they have to pay 20 per cent MAT totalling Rs 602.83 crore on untaxed capital gains made by them over the past three years. Following that some FPIs have approached the courts against the tax department. While foreign investors have been exempted from paying MAT from current fiscal, the tax demands of previous fiscals still stands in view of the 2012 decision of the AAR.