June 30, 2015 2:19:04 pm
The income tax department on Tuesday said it will wait for the apex court ruling pertaining to minimum alternate tax or MAT before pursuing the petition filed by Aberdeen Asset Management in the Bombay high court.
The Supreme Court is due to hear a plea filed by Castleton Investment Limited a Mauritius-based entity on levy of MAT .
The tax department also said it will wait for the views of Justice AP Shah panel formed by the government to examine issues pertaining to MAT on Foreign Portfolio Investors (FPIs).
The government decision to form a panel came after an uproar following notices sent to FPIs for their alleged non payment of capital gains tax on profits reported up to March 1, 2015. The income tax department has sent 68 notices involving tax worth Rs 602.83 crore.
“Charanjeet Chandrapal, standing council of the tax authority, however clarified that the income tax department has not withdrawn the tax demand issued to Aberdeen under MAT.
Several FPIs have contested the claims of the Indian tax department over payment of MAT on their past investments in stocks.
On 2 May, Aberdeen Asset Management through its fund Aberdeen Global Emerging Markets moved court against the final demand order by the income tax (IT) department.
Apart from Aberdeen Global Emerging Markets, at least five foreign portfolio investors (FPIs) have also filed a writ petition in the Bombay High Court against similar tax demands by the income tax department. The petitions filed on April 29 by these investors seek the court’s direction to “withdraw, revoke and cancel” the orders issued by the tax department regarding the payment of MAT retrospectively.
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