Revenue Secretary Shaktikanta Das meets Justice Shah; tax experts to be part of panel on MAT

NEW DELHI: Seeking an early resolution of the MAT dispute concerning foreign investors, the Finance Ministry is working out the terms of reference, which are likely to be announced in four days, for Justice A P Shah committee.

Revenue Secretary Shaktikanta Das met Law Commission Chairman Justice Shah today in this regard, sources said.

The Committee would consist mainly of tax experts, sources said, adding that the ministry is working on the time limit which can be given to the committee for submission of report.

Finance Minister Arun Jaitley had announced setting up of the committee under Shah to look into the dispute regarding dues of Minimum Alternate Tax (MAT) on foreign institutional investors in the Rajya Sabha yesterday.

The terms of reference of the committee, sources said, would be issued within next 3-4 days.

Given that cases are pending in High Court and another in Supreme Court, sources said the committee report would give a forward looking direction to the government to resolve the MAT dispute.

The tax department has already issued notices to 68 FIIs totalling Rs 602 crore for non-payment of MAT at the rate of 20 per cent for profits earned.

The committee would also look into the direct tax policies and legacy issues which bring uncertainty in tax administration.