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Mat applicability on forgeign co

aakash (learner) (29 Points)

05 January 2016

is the MAT also apply on foreign company ?

and if yes do the MAT calculation differ?

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2 Replies

Vishal Goel (Chartered Accountant) (1688 Points)
Replied 06 January 2016

Hello,

The provisions of section 115JB shall not be applicable to a foreign company (including an FII/FPI) if:-

(i) the foreign company is a resident of a country with which India has a Double Taxation Avoidance Agreement and such foreign company does not have a permanent establishment in accordance with the provisions of the relevant Double Taxation Avoidance Agreement, or

(ii) the foreign company is a resident of a country with which India does not have a Double Taxation Avoidance Agreement and such foreign company is not required to seek registration under section 592 of the Companies Act, 1956 or section 380 of the Companies Act, 2013.