The government has excluded some industries from the 15percent tax bracket for new manufacturing companies. Then, it went a step further and made it worse.
Companies try to minimise giving taxes by taking advantage of depreciation, deductions, exemptions, etc from the government. So the government imposes a Minimum Alternate Tax or MAT as an advance tax on these companies.
The chamber argued that imposition of MAT on special economic zones (SEZs) has hindered their growth and especially the performance of exports.
Finance minister Arun Jaitley may propose a package of tax incentives for the labour-intensive leather, gems and jewellery sectors as part of the government's signature "Make in India" initiative to boost manufacturing, create jobs and revive exports.
Indian corporate entities have expanded business operations and now operate globally. This, in turn, has led to increased requirement for services ...
Indian corporate entities have expanded business operations and now operate globally. This, in turn, has led to increased requirement for services ...
Arun Jaitley was speaking after the finance ministry decided last week not to press claims for a Minimum Alternate Tax (MAT) against foreign portfolio investors. India remains locked in major back-tax disputes with telecoms group Vodafone and Cairn Energy.
In an interview to CNBC-TV18‘s Shereen Bhan and Menaka Doshi, AP Shah explained the details of the report that was accepted by the government.
On September 29, the Supreme Court is due to hear a legal challenge filed by Mauritius-based Castleton Investment Ltd against the government over a number of tax-related issues, including on whether MAT can be imposed on foreign investors.
REITs and Infrastructure Investment Trusts (InVITs) are aimed at attracting funds in a transparent manner into the real estate and infrastructure sectors.
The move is aimed at quickly resolving the controversial tax issue facing foreign portfolio investors. The Income Tax Department has sent notices in 68 cases to FIIs for payment of dues totalling Rs 602.83 crore towards Minimum Alternate Tax (MAT).
Finance minister Arun Jaitley met nearly 50 foreign portfolio investors (FPIs) over the Holi weekend in Mumbai, his first meeting post Budget. According to sources, many FPIs raised issues around the rules for permanent establishment.
The levy is likely to have a bearing on foreign portfolio fundings in the Indian stock market.
In its Pre-Budget memorandum for 2015-16 submitted to the Finance Ministry, it has "strongly recommended that MAT should be reduced to 10 per cent...the entire provision of MAT needs to be re-examined to incentivize investments".
Adi Godrej, chairman, Godrej Group expects reduction in Minimum Alternate Tax (MAT) to spur investments in the upcoming Union Budget
Reacting on the Budget, Rajiv Memani, CEO and country managing partner of Ernst & Young said the surcharge of 10 percent imposed on super rich was more than what was anticipated.
We learn from sources that the finance ministry is considering the taxation of controlled financial corporations. CNBC-TV18‘s Aakansha Sethi reports.
The government today proposed to levy Minimum Alternate Tax (MAT) of 18.5 per cent on the book profits of Special Economic Zone developers and units, which was termed as a 'setback' by the players.