Fresh notices, MAT assessments put on hold for FIIs

The Central Board of Direct Taxes (CBDT) has said it will not issue any new demands for payments, and will take no coercive action to pursue claims that have already been filed under the controversial minimum alternate tax (MAT).
The announcement comes after Finance Minister Arun Jaitley’s announcement on Friday to set up a high-level committee for looking into the issue of levy of MAT on FIIs (Foreign Institutional Investments). The Committee is expected to give its report on this issue expeditiously.
“In the light of FM’s announcement, officers dealing with International Taxes have been advised that no coercive action be taken for recovery of demand already raised by invoking provisions of MAT in the cases for foreign companies. Issues of fresh notices for reopening of cases as also completion of assessment should also be put on hold unless the case is getting barred by limitation,” Ministry of Finance said in an official release on Monday.