03 December, 2020

On The Mat

MAT is on the way out.The question is when?

On The Mat

WILL the much-hated minimum alternate tax (MAT) be spiked soon or will it be a long wait before it is given a decent burial? Though Prime Minister H.D. Deve Gowda and Finance Minister P. Chidamba-ram, under mounting pressure from business lobbies, have indicated that MAT may be withdrawn, industry is sceptical about whether the Government will act with the necessary speed.

MAT, as Gowda admitted at the FICCI annual general meeting in Delhi on December 10, was one of the reasons for the stockmarkets being in the doldrums. And this was proved when, the BSE Sensex rose by 143 points on the basis of Gowda's statement. On December 15, addressing the Indian chapter of the International Association of Lawyers in Mumbai, Chidambaram said that "with the Company Law and the Income Tax Act being redrafted, it is possible to bring about a better alignment between the two, and then there may be a cause for minimum alternate tax to disappear." The following day the Sensex rose by 77 points. Says M.G. Damani, president, BSE: "From the...



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