On 1 September 2015, the Indian Ministry of Finance announced that it would not retroactively levy Minimum Alternate Tax (MAT) on foreign institutional and portfolio investors (FIIs/FPIs) that do not have a place of business/ permanent establishment in India.
Under Finance Act 2015, from 1 April 2015 foreign investors are exempted from MAT in relation to long-term capital gains from securities transactions and short-term gains if subject to securities transactions tax. However, the Indian go…