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Reduce MAT to 7.5 pc: Assocham
January, 27th 2007
The Associated Chambers of Commerce and Industry of India (Assocham) has suggested reduction in the Minimum Alternate Tax (MAT) from 10 per cent to 7.5 per cent and withdrawal with retrospective effect amendment in the Finance Act 2006 with a view to provide the benefit of Securities Transaction Tax (STT). While Corporate Tax rate for domestic companies has been reduced, the applicable rate of surcharge has been increased from 2.5 per cent to 10 per cent. The enhanced surcharge has been made effective on payment of MAT, Dividend Distribution Tax (DDT) and Fringe Benefit Tax (FBT). Companies enjoying tax benefits in the IT and ITes, power and infrastructure companies are also required to pay higher tax on MAT, DDT and FBT.
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