Centre assures foreign investors on MAT concerns

The central government on Wednesday tried to assure foreign investors on retrospective tax but asked them to wait for the court verdict for relief on the past minimum alternate tax (MAT).

Addressing the foreign investors, Minister of State for Finance Jayant Sinha assured them the BJP government was being responsive.

The relief in the case of past tax claims lies in the courts, he told a news channel.

Foreign investors were troubled when they received MAT notices since last year on their long term capital gains tax.

Sinha assured the foreign investors of the central government's stable tax policy.

The issue cropped up when the Authority for Advanced Rulings held that MAT should be levied on foreign institutional investors. The matter has gone to the apex court and the court's decision is awaited.

Now foreign institutional investors coming through countries with whom India has double tax avoidance agreements are exempt from the MAT.