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The government has refused to give any relaxation to the Foreign Institutional Investors,FIIs on the 40,000 crore rupees past tax demand and said remedy lies in judicial appeal. Talking to reporters after meeting with FIIs Minister of Finance Jayant Sinha said, NDA government is a responsive government and If people have any problem or complaints, they can come and discuss with government. The Revenue Department had sent notices to FIIs demanding 20 per cent Minimum Alternative Tax on their capital gains by them till March 31, 2015.
A large number of FIIs have protested the notices and demands saying they were exempt from long-term capital gains tax. Some FIIs had approached the Authority for Advanced Rulings (AAR), which had ruled in favour of tax department. Mr Sinha said there was ambiguity over applicability of MAT during the previous UPA government.
AIR correspondent reports that government already made it clear that for the future MAT will not be applicable. A provision to this effect has been included in Finance Bill and once it is approved by the Parliament, the tax will not be applicable from April 2015.
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