The Castleton matter, which raised questions on the applicability of minimum alternate tax (MAT) on foreign companies, has been laid to rest.
This follows the Government submitting before the apex court today that it would abide by the latest stance that MAT would not apply to foreign companies not having a permanent establishment in India or a business presence in the country.
Rakesh Nangia, Managing Partner, Nangia & Co, said the final curtain has been drawn on the applicability of MAT on foreign companies that do not have PE in India nor an office in India.
The Attorney General had stated before the Supreme Court that the tax office would abide by the circular of the Government on the said subject.
This has put the avoidable but controversial subject to rest, Nangia said.
In fact, after the Government issued the circular, the issue was only academic and such foreign companies can now breathe easy, he added.