After setting up a high level panel for examining the issue of Minimum Alternate Tax (MAT) on foreign institutional investors, Finance Minister in order to calm jittery nerves is contemplating to announce more steps to sting out of the MAT row. The finance Ministry is likely to issue a directive to tax authorities in carefully examining the demands on foreign portfolio investors on these issues or for that matter seeking explanations regarding why these tax shouldn’t be levied on them.
Also, the high level panel would be directed to look into other tax issues that are weighing down these investors. These additional steps would be taken in order to send out a strong signal that the government is willing to do its extra bit to provide certainty on the tax front to investors. Notably, certainty of policies for foreign investors as it sought to boost investment had been the pledge of Narendra Modi government right since its victory.
The Ministry has appointed high level committee under the leadership of Commission Chairman AP shah to give its recommendation of the specific issues of MAT on FIIs expeditiously. Post to which government is expected to consider the recommendation of the committee and take an appropriate decision as early as possible.