New Delhi, Sept 3 (KNN) After the government accepted the recommendations made by the Justice A P Shah Committee on Minimum Alternate Tax (MAT), the Central Board of Direct Taxes (CBDT) has advised its field authorities to keep in abeyance for the time being the pending assessment proceedings in cases of FIIS/FPIS for the period prior to April 1, 2015.

CBDT further advised them not to pursue the recovery of outstanding demands, if any, in such cases.

A Committee on Direct Tax Matters chaired by Justice A P Shah has submitted its final report to the Government on August 25, 2015.

The Committee has recommended that Section 115JB of the Income Tax Act, 1961 (‘Act’) may be amended to clarify the inapplicability of the provisions of Section 115JB to FIIs/FPIs having no permanent establishment (PE)/place of business in India.

The Government has accepted the said recommendation and it has been decided to carry-out the appropriate amendment in the Act so as to prescribe that MAT provisions will not be applicable to FIIs/FPIs not having a place of business / permanent establishment in India, for the period prior to 01.04.2015, Finance Ministry today said in a release. 

The field authorities are accordingly advised to take into consideration the above position and keep in abeyance, for the time being, the pending assessment proceedings in cases of FIIs/FPIs involving the above issue, it added.

They are further advised not to pursue the recovery of outstanding demands, if any, in such cases. An instruction to this effect has been issued by the CBDT here yesterday. (KNN Bureau)