Instruction No. 9/2015

Government of India
Ministry of Finance
Department of Revenue
Central Board of  Direct Taxes

North Block, IT (A-ll) Division
New Delhi, dated the 2 ^nd of  September, 2015

Subject: Report on applicability of Minimum Alternate Tax (MAT) on Flls/FPIs for the period prior to Oi.04.2015 and acceptance of the Government thereof-reg..

A Committee on Direct Tax Matters chaired by Justice A.P. Shah, was constituted to examine the issue of applicability of Minimum Alternate Tax ('MAT') on FIIs/FPIs for the period prior to 01.04.2015. The Committee has submitted its final report to the Government on 25.08.2015. The Committee has recommended that section 115JB of the Income-tax Act, 1961('Act') may be amended to clarify the inapplicability of the provisions of section 115JB to FIIs/FPIs having no permanent establishment (PE)/place of business in India. The Government has accepted the said recommendation and it has been decided to carry out appropriate amendment in the Act so as to prescribe that MAT provisions will not be applicable to Flls/FPIs not having a place of business/permanent establishment In India for the period prior to 01.04.2015.

The field authorities are accordingly advised to take into consideration the above position and keep in abeyance, for the time-being the pending assessment proceedings in cases of Flls/PIs involving the above issue. They are further advised not to pursue the recovery of outstanding demands, if any, in such cases.

(Rohit Garg)
Deputy Secretary to the Government of India

F. No. 225/237/2015-ITA-II

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