'Decision to scrap MAT will boost India's investment position'

Industry body CII today said the government's announcement that minimum alternate tax will not be imposed on overseas portfolio investors retrospectively will boost India's position as a favourable investment destination, help reduce litigation and resolve disputes.
"This step would boost confidence of the global investor community and would go a long way in strengthening India's position as a favourable investment destination.
"The decision of the government to do away with MAT on FIIs is a welcome step. It would help in reducing litigation and resolving disputes in favour of FII taxpayers," said CII Director General Chandrajit Banerjee said.
In a big relief to FIIs, the government on Tuesday accepted recommendation of a high-level panel that minimum alternate tax (MAT) should not be imposed on overseas portfolio investors retrospectively.

Finance Minister Arun Jaitley said the panel headed by Law Commission Chairman A P Shah submitted its final report on August 25 on the issue of applicability of MAT on capital gains made by FIIs prior to April 1, 2015.
"It will re-affirm the faith of the investor community in the Indian taxation system as being fair and judicious. The trade and industry expect the government to adopt a similar proactive approach in clarifying other pending tax issues. Apart from reducing litigation, such measures will help improve investor confidence and growth of Indian economy," Ficci stated.