High Level Panel on Tax Issues to Have Independent Members
May, 14th 2015
Finance Minister Arun Jaitley on Wednesday said the high level panel looking into the issue of MAT demand raised on foreign investors will consist of independent people so as to ensure non-adversarial tax regime.
"Since we are committed to a non-adversarial regime, we would like the benefit of the independent people who take a dispassionate view, that is something good for the government," he told reporters here.
The Finance Ministry is in the process of finalising the Terms of Reference of the high level committee, headed by Law Commission Chairman (retired) Justice A P Shah, which will look into few other tax issues, which are essentially legacy issues, besides MAT dues on FIIs.
Mr Jaitley had announced constitution of this panel last week. The Committee would give its report on MAT "expeditiously".
Following that the revenue department put on hold issuance of fresh notices and any further assessments on levy of Minimum Alternate Tax (MAT) on Foreign Institutional Investors (FIIs).
"In the light of Finance Minister's announcement, no coercive action be taken for recovery of demand already raised by invoking provisions of MAT in the cases for foreign companies," the circular said.
While the government waived levy of 20 per cent MAT on capital gains made by FIIs and foreign portfolio investors from this fiscal, the disputes regarding levy of MAT for past years will be looked into by the Shah panel.