Shah Committee appointed to examine MAT issue
Q. Name the committee that has been appointed by the government in May’2015 to examine the matter related to levying of Minimum Alternate Tax (MAT) on Foreign Institutional Investors prior to April 2015?- Published on 27 Jul 15
a. Shah Committee
b. Rangrajan Committee
c. Singhvi Committee
d. Dhar Committee
ANSWER: Shah Committee
The government will soon take a decision on the Justice AP Shah Committee's report on applicability of the Minimum Alternate Tax, MAT, on foreign investors. MAT is a way of making companies pays the minimum amount of tax. The report comes against the backdrop of foreign investors dragging the government to court over applicability of MAT on capital gains made by them. The Income Tax Department had sent notices to 68 FIIs demanding around 603 crore rupees as MAT dues of the previous years with FIIs moving the higher court challenging this demand.