Recommendations of Shah panel on MAT positive for market

Sinha discusses Rs 2,000 cr India Aspiration Fund

Union Minister of State for Finance Jayant Sinha on Saturday said the A P Shah Committee’s recommendation to grant relief to FIIs on Minimum Alternate Tax (MAT) will be a positive for the market.

“The Shah report in fact has come out. I believe they have said the Minimum Alternate Tax (for the period before April 1, 2015) issue should be resolved quickly, which I think will be positive for the market...,” he told reporters at the launch of ‘Innofest’ at the Indian Institute of Science here.

The panel, headed by Law Commission Chairman A P Shah, was set up to resolve the dispute between FIIs and the government after notices were served to 68 FIIs by the Income Tax Department demanding Rs 602 crore as MAT dues.

The notices were served to these FIIs after the Authority for Advance Rulings (AAR) in 2012 had directed Castleton to pay MAT in India on its book profits when the company transferred shares from a Mauritius entity to one in Singapore.

The issue at hand is whether the government would waive MAT prior to April.
Sinha is optimistic that the growth is going to continue in India in spite of the current global volatility because “there are many other positives” in global and Indian economies.
“(Market) tends to see volatility because of the  growth slowdown in China and Fed looking to raise rates — obviously there is a time of turbulence, but of course, overall, there are many other positives in the global economy and certainly (as far as) India is concerned, there are a number of positives. So, I am sure the growth is going to continue in India,” he said.

Sinha also discussed the significance of India Aspiration Fund (a fund of funds starting with Rs 2,000 crore) that would be targeted at startups and entrepreneurs to foster innovation.

‘If you can solve India’s problems, you can solve world’s problems’

Minister of State for Finance Jayant Sinha on Saturday said that India’s economic destiny is to be the engine for progress for the next five to six billion people on the planet.

“We have seen how America is the economic engine for the top one billion of this planet. What we do in India has immense opportunity to shape the lives and provide products and services and solutions for six billion people on the planet. And that is why I think India can be the engine for progress.” Addressing  jam-packed entrepreneurs, Sinha said, “If you (entrepreneurs) can solve India’s problems, then we can solve the world’s problems.” He added, “Top 50 million people in India are global citizens.

Then we have 250 million people who fall under the middle class category who can afford cars, motorcycles, and live in urban areas. Then we have billion people, who are trying to get into middle class category with lot of aspirations...but they are yet to get the access to basic amenities. It is high time that we take the responsibilities to uplift the bottom of the pyramid so that the country can be shifted to better economic growth.”