The Finance Ministry has set up a committee to look into the aspect of whether and how minimum alternate tax (MAT) be levied on companies that are required to adopt ‘Ind AS’ from April 1 next year.
Ind AS is the new generation accounting standard largely modelled on the international financial reporting standards (IFRS).
As per the roadmap notified by the Corporate Affairs Ministry, Indian companies (whether listed or unlisted) with a networth of over ₹ 500 crore should adopt Ind AS from April 1 next year.
Also, comparative information has to be provided for opening balance sheet as on or after April 1, 2015 and financial year ending on or after March 31, 2016.
“The current MAT provisions in the income-tax law are aligned to existing Indian GAAP. For companies that would migrate to Ind AS from April 1 next year, there is a perception that MAT provisions may not apply. To sort this out, we have formed this committee”, Rakesh Kumar Bhoot, Director, Central Board of Direct Taxes (CBDT), told Business Line on the sidelines of a Confederation of Indian Industry event here.