Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: VAT Audit :: ACCOUNTING STANDARD :: cpt :: TDS :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: list of goods taxed at 4%
 
 
« General »
 Tax Department To Launch 2nd Phase Of Bank Accounts' Scrutiny Next Month
 How to claim tax benefit on tuition fees under Section 80C
 Online Income Tax grievance redressal facility launched at 60 offices
 Demonetisation impact on government tax revenue marginal; direct tax personal income grew at above budget estimates
 ICAI seeks more accountability, transparency in defence sector
 Will Budget help double farmers’ income?
 Verify online deposits made post demonetisation, income tax department asks taxpayers
 Union Budget 2017: Best budget is do not change anything, do no harm, implement well
 Why salaried class deserves standard deduction
 3 new taxes that Modi government could introduce, but won't
 Tax gains may showcase demonetisation windfall

NBFCs seek exemption from MAT
October, 20th 2009

Non-banking financial companies (NBFCs) have sought exemption from minimum alternate tax (MAT) under the proposed direct tax code. The companies have told the finance ministry about their reservations on the code.

In a letter to the finance ministry, the Finance Industry Development Council (FIDC), a lobby of mainly asset-financing NBFCs, has argued that the 2 per cent MAT on gross assets that the code proposes will be a substantial drain on post-tax profits of NBFCs.

The draft direct tax code was released on August 12 and the finance ministry is seeking comments before preparing the final Bill.

The MAT rate of 2 per cent of gross assets assumes a return on assets of at least 8 per centthis assumption is clearly untenable. It is a well-documented fact that NBFCs, like their banking counterparts, work with a return of assets in the range of 1.5 per cent to 2 per cent, the letter said.

Alternatively, NBFCs want MAT linked to book profits instead of gross assets or the base for computation changed from gross assets to net assets.

Alternatively, and at the every least, MAT should be levied at the rate of 0.1 per cent and uniformly applied to all permitted financial institutions, the letter said.

The draft direct tax code has proposed MAT at the rate of 0.25 per cent of gross assets of banks. For other companies, the proposed rate is 2 per cent of gross assets.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - We Bring IT. Offshore software outsourcing company. We use Global Delivery Model (GDM) and believe in Follow The Sun principle

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions