Government reviewing tax rules on savings, capital gains Nov 5, 2009
The tax authorities are also considering changes in rules on the Minimum Alternate Tax (MAT) based on gross assets, taxation of foreign companies operating in India, charitable firms and house property, it said. The government is also considering scraping exemptions on saving schemes and taxing them at the time of withdrawal. (India Times)
DTC to be implemented from 2011-12 Oct 23, 2009
NEW DELHI: The government plans to implement the Direct Taxes Code (DTC) from 2011-12 after addressing all concerns relating to controversial proposals like taxation of retirement benefits, weeding out incentives for ho 00004000 using sector and changes in the Minimum Alternate Tax (MAT) ... The critical areas of concern include shifting the base for computation of Minimum Alternate Tax (MAT) from book profits to assets; capital gains taxation in case of non-residents; double tax avoidance... (India Times)
Govt to tweak tax code Oct 10, 2009
The government will also look into objections raised by the industry, regarding new proposed minimum alternate tax (MAT) to be levied on the basis of assets of a company instead of profit. In an interaction with the industry captains and tax professionals, FM Pranab Mukherjee on Friday said the government would implement the new tax system only after a comprehensive review of the proposals in the light of suggestions put forwarded by all stakeholders. (India Times, India -- Intl Business)
On tax code, India Inc bats for masses Oct 10, 2009
The government will examine all critical proposals of the new code such as taxation of savings schemes, imposition of Minimum Alternate Tax (MAT) on gross assets, capital gains tax on non-residents, double taxation avoidance agreements, taxation of foreign firms and charitable organisations before finalising the draft, he said ... The minimum alternate tax (MAT) on gross assets is one such proposal that has invited all round criticism from the industry. (India Times)
'Offer subsidies to export sector' Aug 23, 2009
The paper further said exports should not be subjected to minimum alternate tax (MAT). "Export proceeds shouldn't be subjected to MAT as it amounts to various bureaucratic hassles and encourages unnecessary government intervention and interference in a smooth flow of exports," Jindal said. (India Times)
'New Tax Code will help bring about social equity' Aug 18, 2009
The reason for exclusion of companies from levy of wealth-tax is because the code provides for minimum alternate tax (MAT) on companies calculated with reference to the value of the gross assets. The rate of MAT will be 0. (India Times)
Comment: Change The Code Aug 14, 2009
The minimum alternate tax is to apply to assets, not book profits. This obligation is in line with international practices. (India Times, India)
Tax code: An idea whose time has come Aug 14, 2009
However, there is a significant dampener to this feel-good story in the form of the new basis of levy of minimum alternate tax (MAT). The MAT will now be levied at 2% of the value of gross assets in the case of all companies except in the case of banking companies (tax at 0. (India Times)
An equitable tax policy Aug 14, 2009
The proposal to replace minimum alternate tax with a 2% levy on gross assets on balance sheet is welcome, and it will bring all companies enjoying various tax holidays, including those in SEZs, into the tax net. Putting out the draft direct taxes code for discussion before the Bill is moved in Parliament is a commendable move, but there is the danger that several interest groups will lobby for changes in the draft code to retain sectoral benefits. (India Times)
New Direct Tax Code mostly profitable for India Inc Aug 13, 2009
The Direct Tax Code proposes a substantial reduction in the rates of tax on corporate income, near-removal of the difference in the tax treatment of domestic and foreign companies and a shift in the base of minimum alternate tax (MAT) from book profits to value of gross assets. It also envisages doing away w 00004000 ith a large number of exemptions and deductions though in a few cases, these profit-linked incentives are replaced with a new set of incentives linked to capital investment. (India Times)
Oil & gas cos hit by lower prices, refining margins Aug 6, 2009
An increase in tax rates under minimum alternate tax (MAT) further impacted its bottomline, which fell 12% to Rs 3,636 crore. Essar Oil, however, turned out substantially better results, thanks to a sales tax deferral of Rs 210 crore and Rs 30 crore gain in inventory valuation. (India Times)
FBT abolition positive; disinvestment target low: Jhunjunwala Jul 8, 2009
The budget proposed increase in the minimum alternate tax to 15% from 10% of book profit while allowing to carry forward tax credit on MAT to 10 years from 7 years. On securities transaction tax, where the market had expected some changes, the finance minister disappointed again by saying only new pension system trust would be exempt from STT.. (India Times)
Post Budget Analysis: Infra & Power Jul 8, 2009
However, raising the tax rate of Minimum Alternate Tax (MAT) from 10 to 15 percent would negatively impact infrastructure companies, which otherwise enjoy tax holiday benefits. Essentially, this would result into larger cash outflow, the benefits of which would be available after a period of 10 years (currently, 7 years). (India Times)
FMCG, durable cos eye rural mkts Jul 7, 2009
Though the hike in minimum alternate tax from 10% to 15% would adversely hit companies with factories in excise-free zones, they rule out increasing consumer prices. For the auto industry, semi-urban and rural markets already contribute close to 40% of sales, led by demand for two-wheelers, entry-level cars and tractors. (India Times)
COMMENT: Casting A Wide Net Jul 7, 2009
The corporate sector is naturally less pleased about the Minimum Alternate Tax rate being raised to 15 per cent of book profits. A Direct Taxes Code will be announced in 45 days. (India Times, India)
Budget 2009: More funds for welfare, infrastructure Jul 6, 2009
For India Inc, the corporate tax rate was kept unchanged, even as the finance minister sought to reduce the burden on industry by abolishing the commodities transaction tax, but hiked the minimum alternate tax to 15 percent of book profits. Mukherjee also promised to scrap the fringe benefit tax to please corporates, introduce a pan-India goods and services tax from April next year and gave 100 percent tax deductions to political donations. (India Times, India)
Market cuts losses; Sensex down 500 points Jul 6, 2009
While Finance Minister Pranab Mukherjee withdrew fringe benefit tax (FBT) and commodities transaction tax (CTT) to be abolished, he kept the corporate tax unchanged and increased the minimum alternate tax to 15% from 10% of book profit. At 1:20 pm, Bombay Stock Exchanges Sensex was at 14260. (India Times)
India Inc welcomes Budget with reservations Jul 6, 2009
NEW DELHI: India Inc on Monday welcomed the focus on reviving economic growth to 9 per cent as also the indications for bold tax reforms, but expressed regret that the Minimum Alternate Tax was raised and Security Transaction Tax was let to continue. "Finance Minister Pranab Mukherjee's efforts to revive the economy back to nine per cent (growth) is in the right direction," ICICI Bank MD and CEO Chanda Kochhar said today. (India Times)
Highlights of Union Budget 2009-10 Jul 6, 2009
Minimum Alternate Tax hiked to 15% from 10. Tax holiday on petro sector extended to natural gas. (India Times, India)
Govt may extend tax holiday for software firms Jul 5, 2009
The other demands are abolishing minimum alternate tax (MAT) for STPIs and export-oriented units, safe harbour provisions in transfer pricing regulations, removing fringe benefit tax (FBT) on employee stock option plans (ESOPs) and no duplication of indirect taxes. At present, both service tax and value-added tax (VAT) are levied on customised software and renewing licence to use software. (India Times)
Should the budget look at expanding the tax base rather than reworking the tax structure? Jun 30, 2009
May consider tweaking Fringe Benefit Tax, levied on perks given to employees by a company, and Minimum Alternate Tax paid by firms who have book profits but report net loss. Both are at 10 percent now. (India Times)
Arizona Legislature School tax credit bill awaits governor May 29, 2009
One of the credits is for regular corporate income taxes; the other is for an alternate tax paid by insurance companies. The legislation is a reaction to an Arizona Supreme Court ruling that said two small voucher programs for foster care and disabled children are unconstitutional. (Casa Grande Valley Newspapers, AZ)
