Indian MNCs under MAT set for higher tax outgo

Budget provision intends to restrict MAT credit available on foreign tax credits

The Union Budget has introduced a provision that intends to restrict the minimum alternate tax (MAT) credit available on foreign tax credits (FTC), which could increase the overall tax outgo for Indian companies having overseas operations, especially those paying sizeable dividends.
 
The Budget has introduced an amendment in the minimum alternate tax (MAT) provisions (applicable to companies) and alternate minimum tax (AMT) provisions (applicable to non-corporates) for rationalising the quantum of MAT and AMT credits which can be carried forward by the relevant Indian taxpayer, if he has claimed foreign tax credits against its MAT/AMT liability in a particular