Applicability of Minimum Alternate Tax (MAT) on foreign companies for period prior to 1.04.2015 - CBDT Issues Instructions
ON the issue of applicability of Minimum Alternate Tax (MAT) under section 115JB of the Income Tax Act, 1961 on Foreign Institutional Investors (FIIs)/Foreign Portfolio Investors (FPIs), the Board had issued instruction No.9 dated 02/09/2015 informing the field authorities that the Government has accepted the recommendation of the Committee on Direct Tax Matters that Section 115JB be amended to clarify the inapplicability of MAT to FIIs/FPIs having no permanent establishment/ place of business in India and decided to carry out appropriate amendment to this effect. In view of this, the field authorities were advised to keep in abeyance, for the time being, the pending assessment proceedings in cases of FIIs/FPIs involving the said issue.
Board now informs that an appropriate amendment to the Income-tax Act in this regard shall be undertaken through Finance Bill, 2016.
CBDT has now advised the field authorities that pending assessments involving applicability of MAT on foreign companies (including FIIs/FPIs) should be completed in accordance with the decision of the Government.
Please see more on this in The MAT Controversy -Under the mat - 02 -09 2015.
CBDT Instruction in No.18/2015., Dated: December 23, 2015