Shah Committee on MAT dues on FIIs holds first meeting

The committee has been entrusted with the task of examining Minimum Alternate Tax notices to the Foreign Institutional Investors for the period prior to April 1, 2015

The Justice A P Shah committee on levy of minimum alternate tax (MAT) on foreign institutional investors (FIIs) on Monday met for the first time as it looked to expeditiously give its recommendations to resolve the contentious issue that has riled investors.

The panel, headed by Law Commission Chairman A P Shah, was formally constituted last week, with former Chief Economic Advisor Ashok Lahiri and chartered accountant Girish Ahuja as the other two members. It will examine all the related legal provisions, judicial/quasi judicial pronouncements.

The finance ministry stated that the Committee might interact with various stakeholders and invite officers from Department of Revenue for consultations/ discussions.

Following the announcement of setting up of the panel earlier this month, the tax department has directed its field officers to put on hold issuance of fresh notices and any further assessments on levy of this tax on such entities.

"Issue of fresh notice for reopening of cases as also completion of assessment should also be put on hold unless the case is getting barred by limitation," said a CBDT circular earlier this month.