Union Government Constitutes Justice AP Shah Committee to look into the issue of MAT on FIIs

Union Government has constituted Committee headed by Justice A.P. Shah to look into the issue of Minimum Alternate Tax (MAT) on Foreign Institutional Investors (FIIs).
It was announced by Union Finance Minister Arun Jaitley in Rajya Sabha. The committee will submit its report expeditiously in order to resolve the issue of MAT between the tax authorities and the foreign investors.
Background
Government uses the MAT to get companies, which pay less or zero tax due to the available exemptions to pay some tax.
The issuance of such tax demand on FIIs has caused an outcry among them as they were exempted from paying such taxes from April 1, 2015.
But the tax authorities have demanded MAT in respect of previous years i.e. till 2014-15.

Month: Current Affairs - May, 2015