Centre makes peace with FIIs
Taxmen put MAT assessment on hold
By : DC Correspondent
Update: 2015-05-12 00:46 GMT
New Delhi: The Centre on Monday put on hold issuance of fresh notices or any further assessments on levy of minimum alternative tax (MAT) to foreign portfolio inves-tors — previously kno-wn as foreign institutional investors (FIIs), to address their concerns.
Last week finance minister Arun Jaitley had announced setting up a high-level panel under Law Commission chairman A.P. Shah to look into issue of MAT on FIIs.
“In the light of the finance minister’s ann-ouncement, officers dealing with Internat-ional Taxes have been advised that no coercive action be taken for recovery of demand already raised by invoking provisions of MAT in the case of foreign companies particularly FIIs,” said finance ministry in a statement on Monday.
The finance ministry further said that 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. “The committee is expected to give its report on this issue expeditiously,” the statement said.