MAT will become irrelevant once tax exemptions are gone: CBDT

Via The Economic Times | Mar 04, 2015

The concept of MAT (minimum alternative tax) will become "irrelevant" as all tax
exemptions given to corporates are proposed to be phased out over a period of f
our years, a top Finance Ministry official said. "If all exemptions go...so MAT
itself will become irrelevant. There will be no difference between book profit a
nd profit you offer for taxation purposes," Central Board of Direct Taxes (CBDT)
Chairperson Anita Kapur said here. "The (Finance) Minister (Arun Jaitley) has s
aid that within four years, all exemptions except some which will stay like for
Andhra Pradesh and Telengana, which we have given recently, will be phased out,"
she said. When asked about West Bengal and Bihar, she said "it's still not part
of the Finance Bill. As of now, he (the Finance Minister) has announced in his
speech, we still have to get outline of what was there for Bihar." Under current
Finance Bill, she said, "We have only done for Andhra Pradesh and Telengana. Bu
t in my view, once the exemption are gone, there is also need to be a call taken
that there are some exemptions with sunset...so the Minister also needs to look
at those which are going to be sunset, from which date they will sunset, whethe
r the units continued to enjoy benefits." During the course of the year, she sai
d, "the Finance Minister will come out with the roadmap for which are the exempt
ions, when they are setting...it is a process, we have enough time to come out.
We hope to bring out a roadmap for what we want to do".
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