Aberdeen Capital, a Foreign Investor that had received a notice for Minimum Alternate Tax (MAT) for income on capital gains in past years, has managed to get a stay order from the Bombay High Court . This is a technical stay. It’s been given because the concept is supposed to be: 1) IT department passes a draft order 2) Aberdeen would have got 30 days to refute 3) Only then is final order passed. Since this was a final order without a draft, it goes into the “stay” bin. Obviously this can be fixed by going back, issuing a draft order and going through the motions to reach the same point in 30 days. This is largely a non-issue by now, with the final decision that must come from the court (since the tax department will keep demanding the tax). See also: FIIs get hit by massive MAT Demand . In summary, FIIs have been told that even though long term capital gains are not taxed in India, MAT applies.… (Read On…)
[via Capital Mind]
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