CBDT to expeditiously process MAT exemption claims of FIIs

Source: PTI

Government on Friday said the tax department will expeditiously process the cases where FIIs have claimed exemption from minimum alternate tax (MAT) as a benefit under the bilateral tax treaties. "The CBDT (Central Board of Direct Taxes) has directed its officers to expeditiously process the cases where the Foreign Institutional Investors (FIIs) have claimed treaty benefits under the Double taxation Avoidance Agreements (DTAA)," Minister of State for Finance Jayant Sinha said. The Income Tax Department has sent notices in 68 cases to FIIs for payment of dues totalling Rs 602.83 crore towards MAT. In a written reply to a question in the Lok Sabha, Sinha said the CBDT has directed that issuance of fresh notices for reopening of cases as also completion of assessment should be put on hold unless the case is getting barred by limitation. Sinha further said: "The CBDT has not received any application for arbitration from any FII on this issue." As the MAT notices rocked the markets, the tax department had assured FIIs based in countries with whom India has DTAAs, that they would be exempt from the 20% levy. The Finance Ministry had in May also set up a 3-member committee under Justice A P Shah to examine the matter relating to levy of MAT on FIIs prior to April 2015. The Committee has submitted its report to the Minister on July 24. The Budget 2015-16 has exempted FIIs from paying MAT with effect from April 1, 2015.      

July 31, 2015 | 8:02 pm IST.