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No MAT on Foreign Companies?

Published on Thu, Sep 24,2015 | 23:05, Updated at Fri, Sep 25 at 20:31Source : CNBC-TV18 |   Watch Video :

The CBDT announced in a press release today that the Government has re-considered its position regarding the levy of MAT (Minimum Alternate Tax) on foreign companies. Recently, after the AP Shah Committee report was submitted to the Finance Minister, the CBDT clarified that MAT would not be levied on foreign portfolio investors in India.

Now the Government says that with effect from 01.04.2001 the provisions of section 115JB shall not be applicable   to a foreign company if —

•    the  foreign company is a resident of a country having  DTAA with India and such foreign company does not have a permanent establishment within the definition  of the term in the relevant DTAA,  or

•    the foreign company is a resident of a country which does not have a DTAA with India and such foreign company is not required to seek registration under section 592 of the Companies Act 1956 or section 380 of the Companies Act 2013.

In this discussion CNBC TV18’s Menaka Doshi asks Mukesh Butani, Partner, BMR and Daksha Baxi, Partner, Khaitan about the companies that stand to gain and those that don’t.

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