Central Board of Direct Taxes will settle all minimum alternate tax (MAT) matters of FIIs coming under the ambit of Double Taxation Avoidance Agreements within a month of filing of claims.
“Since the issue involved in such cases is limited, such claims should be settled expeditiously. It has therefore been decided that in all cases of foreign institutional investors seeking treaty benefits under the provisions of respective Double Taxation Avoidance Agreements, decision may be taken on such claims within a month from the date such claim is filed,” an official release said on Monday.
The move is aimed at quickly resolving the controversial tax issue facing foreign portfolio investors. The IT Department has sent notices in 68 cases to FIIs for payment of dues totalling Rs 602.83 crore towards Minimum Alternate Tax (MAT).
Following a decision by the Authority of Advance Rulings, the Tax Department had slapped notices, saying they have to pay 20 per cent MAT on untaxed capital gains made by them over the past three years.