Ready for Shah Committee's report on MAT?

Justice AP Shah Committee is ready with its final report on the minimum alternate tax (MAT) issue. The concerned authorities are slated to meet on Friday, while the recommendations have all been wrapped up. It is also possible that the government may clarify its stance on the Minimum Alternate Tax (MAT) report only after examining the contents. As a safer stance, the government might wait for the Castleton case in Supreme Court, tentative for August 4, before deciding on the levy of MAT on Foreign Institutional Investors (FIIs) prior to April 1 2015. As known, this financial year onwards, the FIIs have been completely exempt. Be it debt income or be it equity income, there is no levy of MAT on FIIs. So, the issue deals with the demand notices or the assessment notices which have gone out prior to April 1 2015.Meanwhile, in all possibilities the Shah panel may recommend that only domestic companies would come under the MAT. Since it is a domestic tax and FIIs, these companies should actually be exempt from it. However, if this exemption is made public on FIIs, there is a set administrative procedure under the Income Tax laws. So, demand notices, which have already been issued, will not be a problem. The CBD will require a clarification circular which may come out by tomorrow.