Chamber Seeks Fresh Look At Mat

Describing MAT as anti-growth and a retrograde step, the chamber has pointed out that corporate bodies have been forced to review their expansions and put a break on new ventures.

MAT is also drying up new equity issues and having its demoralising effect on exports.

Assocham feels that MAT should be totally withdrawn if industrial growth of 12 per cent on sustained basis is to become a reality. However, if the withdrawal of MAT for the current year is not possible, a reasonable treatment be given to taxes paid as MAT under section 115 JA. They should be treated as tax paid in advance and adjusted against the tax for the year/s when such company becomes liable to pay tax on its regular income as computed under the Income Tax Act. The government will thus get additional revenue currently and the companies will get fair treatment, over a period.