Ruling on MAT a Relief to Regulated Funds: ICI

Published: 03rd September 2015 10:01 AM  |   Last Updated: 03rd September 2015 10:01 AM   |  A+A-

By PTI

WASHINGTON: Welcoming the Indian government's decision to adopt recommendations of the AP Shah Committee Report on Minimum Alternate Tax, US-based Investment Company Institute has said the move will bring certainty and relief to the investors.

In its decision, Finance Ministry stated that it will pursue legislation, clarifying that Minimum Alternate Tax (MAT) does not apply to investment funds and will instruct revenue assessors that the government agrees that MAT does not apply.

"The announcement by the Ministry of Finance brings certainty and relief to regulated funds from around the world and their investors, enhancing the benefits of participating in India's financial markets," said Paul Schott Stevens, President and CEO of Investment Company Institute yesterday.

"We have advocated vigorously on behalf of our global membership on this issue, and are pleased that it is being resolved to allow global funds to remain fully engaged investors in the country's growing capital markets," he added.

ICI deputy general counsel Keith Lawson said the actions effectively remove the tax uncertainty faced by foreign funds that have a strong interest in continued growth of the Indian

capital markets.

"Foreign institutional investors needed clarity that MAT does not apply to them in any fashion, retroactively or in the future," Lawson said.

"The Shah Committee's report and the Ministry's subsequent acceptance of the report offer this clarity," he added.

The ICI is the national association of US investment companies. Established in 1940, ICI encourages adherence to high ethical standards, promotes public understanding of funds

and investing.

Stay up to date on all the latest World news with The New Indian Express App. Download now
(Get the news that matters from New Indian Express on WhatsApp. Click this link and hit 'Click to Subscribe'. Follow the instructions after that.)

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp