CII for exempting infrastructure firms from MAT

Friday, 26 January 2007, 06:00 Hrs
Printer Print Email Email
New Delhi: The Confederation of Indian Industry (CII)urged the government to exempt infrastructure companies from the purview of minimum alternate tax (MAT) to give a boost to infrastructure spending in the forthcoming union budget.

"Though the infrastructure companies are exempted from payment of any tax for a period of 10 years, the imposition of MAT resulted in the fiscal incentives bestowed by the government on the selected sectors being taken away in another form," a CII statement said.

"Given the huge financial requirement of investment in infrastructure, the infrastructure development companies should be excluded from the purview of Fringe Benefit Tax (FBT) also," it added.

The industry body has suggested that, as gas pipelines are critical infrastructure projects, gas transportation and distribution projects must be covered within the definition of the "infrastructure facility" under Section 80IA for the purpose of tax benefits.

It also called for the infrastructure industry status for the health care sector to encourage private participation, the statement said.
Source: IANS
SPOTLIGHT
GST rate cut to spur Bengaluru
The realty market in India's tech hub is set to grow as lower Goods and Services Tax (GST) rate..
SpiceJet plans aggressive
Budget passenger carrier SpiceJet plans to aggressively expand its international networks to fl..
Ola raises Rs 400 cr for electric
Leading ride-hailing cab aggregator Ola on Friday said it raised Rs 400 crore from its early in..
Fossil Group sells smartwatch
Global watch and accessories maker Fossil Group has announced to sell its smartphone technolog..