Shah panel submits report on MAT to FM

The high-level Justice A P Shah Committee on Friday submitted a 66-page report to the Government on applicability of minimum alternate tax (MAT) on FIIs, an issue which had riled foreign investors.Shah submitted the report, whose contents have been kept secret for now, to Finance Minister Arun Jaitley at a time when foreign investors have dragged the Government to court over applicability of MAT on capital gains made by them. Foreign institutional investors (FIIs) are hoping that the Government will waive MAT prior to April 2015.

“It’s a 66-page report. We have received responses from industry, chartered accountant firms, CBDT and leading advocates,” Shah said after submitting the report to Jaitley.“The term of reference was MAT on FIIs. We answered that,” he added without elaborating.Revenue Secretary Shaktikanta Das later speaking to reporters said: “The Government will examine and consider the report. The Government will take a decision soon.”

Das said the Government will not make the report public before it examines and accepts it.The Government had in May appointed the Shah Committee to examine the matter relating to levy of MAT on FIIs prior to April 2015. The committee looked into all related legal provisions, judicial, quasi-judicial pronouncements and other relevant aspects.

The panel, headed by law Commission Chairman A P Shah, included former Chief Economic Advisor Ashok lahiri and Chartered Accountant Girish Ahuja as other two members.The Supreme Court is hearing a petition filed by Castleton on levy of MAT while there is also another case on the same pending in the Bombay High Court.