September 1, 2015 – Washington, DC – The U.S.-India Business Council (USIBC) applauds the Government of India for accepting the A.P. Shah Committee’s recommendation that the Minimum Alternative Tax (MAT) provisions do not apply retrospectively to Foreign Institutional Investors (FIIs) before April 1, 2015.
“The Council applauds Finance Minister Jaitley and Justice A.P. Shah and their teams for reaching this resolution. This announcement demonstrates the Government of India’s commitment to attracting long-term foreign investment into the country by providing greater tax certainty and ensuring ease of doing business for the global investment community,” said Dr. Mukesh Aghi, President, U.S.-India Business Council.
This decision reduces tax uncertainty for FIIs and will result in increased investment into India. USIBC supports actions, including those announced in India’s Union Budget, supporting a more predictable and consistent tax framework that follows published guidance, respects past court decisions, and conducts audits and investigations without predetermined outcomes and targets for revenue.
Formed in 1975 at the request of the U.S. and Indian governments, the U.S.-India Business Council is the premier business advocacy organization, composed of more than 300 top-tier U.S. and Indian companies advancing U.S.-India commercial ties. The Council is the largest bilateral trade association in the United States, with liaison presence in New York, Silicon Valley, and New Delhi.