A Committee on Direct Tax matters chaired by Justice A.P. Shah was constituted with the initial mandate to examine the matter relating to levy of MAT on FIIs\/FPIs for the period prior to 01.04.2015. The Committee has submitted its final report on applicability of MAT on FIIs\/FPIs for the period prior to 01.04.2015 to the Government on 25.08.2015. <\/p>\n
The Committee has recommended that section 115JB of the Income-tax Act may be amended to clarify the inapplicability of MAT provisions to FIIs\/FPIs. Alternatively, the Committee has suggested that a Circular may be issued clarifying the inapplicability of MAT provisions to FIIs\/FPIs.<\/p>\n
The Government has accepted the recommendation of the Committee to clarify the inapplicability of MAT to FIIs\/FPIs and has decided that an appropriate amendment to the Income-tax Act will be carried out. Through the amendment the Government proposes to clarify that MAT provisions will not be applicable to FIIs\/FPIs not having a place of business\/ permanent establishment in India, for the period prior to 01.04.2015. Pending such amendment, CBDT will convey to the field formations the decision of the Government to accept the recommendation.<\/p>\n