Govt to amend tax law retrospectively to give relief to foreign firms

The amendment would provide relief to foreign firms that do not have a permanent establishment in the country

India will amend its tax law with retrospective effect to exempt foreign companies covered under double taxation avoidance agreements from the minimum alternative tax (MAT), the finance ministry said in a statement on Thursday.

The amendment, which would be effective from April 1, 2001, would also provide relief to foreign firms that do not have a permanent establishment in the country, the statement added.