With the Castleton case hearing just 10 days away, the government has no intention to merely sit on the AP Shah commission report submitted today, said Finance Secretary Shaktikanta Das.
The commission, led by AP Shah, today submitted its 66-page report to the Finance Ministry on whether minimum alternate tax (MAT) should be levied on foreign institutional investors (FIIs)
In an exclusive interview to CNBC-TV18, Das urged all stakeholders to not speculate, further adding that the expectation of making the report public is inappropriate.
Below is the edited transcript of Shaktikanta Das’s interview with CNBC-TV18's Sapna Das
Q: First off a very basic question. A lot of tax experts are expecting that this Shah Panel report on the Minimum Alternate Tax (MAT) issue will actually cover foreign companies but my understanding is that this pertains to the MAT levy on Foreign Institutional Investors (FIIs) prior to April 1 2015 which was mentioned very clearly in the press release. Is that the case?
A: First thing is we have not yet gone through the report. The report was submitted a little while ago and first we have to go through the report and I myself have not gone through the report. So, therefore it will not be correct at this point of time to make speculations without seeing the report. So, any speculation which is being made outside, whether it will apply to FII or to all foreign companies it will not be proper to do so without seeing the report. First we need to see what is there in the report.
Q: Point taken but the terms of reference mentioned FIIs. So I am just asking a very basic question. Is there clarity on that or it is thus far very clear right now?
A: No, the terms of reference are very clear and I would guess the report of the committee will relate to the terms of the reference but again I must qualify by saying that I have not yet gone through the report. So, without going through it is not proper on my part to start commenting on it.
Q: Markets or rather industry experts so to speak are like kind of very disappointed that why the government has not made it public. Government itself has its own very serious and very straight forward rationale but they were expecting that at least the report should be made public so there could be some signal why are we dragging this issue. Any thoughts or comments on that?
A: First thing is the issue is not being dragged at all. I said earlier today also while meeting the media that the government is not going to sit over the report. The government will take very quick decision in the matter and there will be no delay on the part of the government. At this point of time the report - what is important for the stakeholders is the final decision of the government. That is more important than to sort of know what is immediately there in the report because the decision taking in government is a process. We have to see what is the recommendation and then accordingly the government has to decide whether it is a matter which can be decided within Finance Ministry at the official level or within Finance Ministry at ministers level or we need to go to the cabinet. Now, without going through the report and without knowing at what level the decision needs to be taken it is not proper for us to just make the report public and second thing is ultimately what matters to the stakeholders is the final decision which the government will take. That is more important. So, I would therefore urge everybody and request everyone not to start speculating this way or that way about the contents of the report or the final outcome of the report based on government decision.
Q: Final wrap up question. Any kind of timeline that will be possible in terms of when this is feasible for the government to make the stance clear and this goes without saying, it is up to you to answer it. Will any kind of reflection be there when you take up the Castleton matter or rather when Supreme Court takes up the Castleton matter in the first week of August? Will the report in some way without a direct reference probably find any kind of reflection of the government's stance over this?
A: I have to go through the report and as I told earlier today there are still Castleton case in Supreme Court, it is still about 10 days away. So, first we have to go through the report and we will then take a view.
Q: Could be possible even this was the case?
A: Let me once again reiterate that the government will take a decision in the matter and I would once again urge all the stakeholders not to make any kind of speculation about the content of the report or about the likely decision of the government.
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