Recently we read in the newspapers that Indian Government is mulling over easing the incidence of minimum alternate tax (MAT) on infrastructure companies by exempting these companies for some initial years. Which among the following is the most prominent reason for consideration for this
by the government?
(A)These companies are involved in the projects that are needed for the development of the country
(B)These companies are involved in high value investments
(C)The gestation period of projects taken up by these companies is very long
(D)Most of these companies are under deterioted financial condition due to the ongoing financial crisis
(E)None of them
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Foreign investors have been crying foul, in recent weeks, over the ₹40,000 crore tax demand — for Minimum Alternate Tax (MAT) — payable by them for previous years.
The Finance Minister has been vehement in support of the tax department, stating that asking for what is legitimately due to the government does not amount to tax terrorism.
Whether foreign investors, investing in our country under the aegis of double tax treaties, are liable to pay MAT is open to debate.
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