The Lok Sabha on Thursday passed the Finance Bill 2015 through voice vote.
The Bill was passed after the Finance Minister Arun Jaitley moved as many as 41 official amendments. The amendments include slew of tax concessions to foreign companies on the minimum alternate tax (MAT) front, exempting the sponsors/promoters of real estate investment trusts from MAT on the notional gains arising from shares of a special purpose vehicle to a business trust in exchange of units allotted by that trust.
The biggest relief to foreign companies is that they will not henceforth be subjected to MAT on any interest, royalty or fees for technical services.
This would mean that incomes earned by foreign companies (including foreign institutional investors) on investments in Government and other fixed income securities will not be covered under MAT provisions.
Jaitley also softened the blow of the conditions stipulated in the Finance Bill for foreign fund managers to relocate to India without having to face adverse tax consequences.
The Finance Minister said that certain conditions will not apply in the case of sovereign wealth funds and offshore funds floated by foreign Government.
He also raised the customs duty on natural rubber (on the advalorem side to 25 per cent from 20 per cent) to give better protection to domestic growers
The basic customs duty on raw silk has been reduced to 15 per cent.
srivats.kr@thehindu.co.in