Minimum Alternative Tax And Dividend Distribution Tax On Special Economic Zone
Background Karnataka High Court (High Court) in the case of M/s Mindtree (Tax Payer) v. Union of India[1] held that the imposition of Minimum Alternate Tax and Dividend Distribution Tax on SEZs is neither a breach of promise nor a violation of the doctrine of legitimate expectation and also held that tax levies on SEZs is constitutionally valid. Facts of… Read More
Tags: Dividend Distribution Tax, Finance Act, Government of India, Income tax, Income Tax Act 1961, SEZ, SEZ Act, Special Economic Zone
Withdrawal of exemptions to SEZs cannot be treated as a breach of Doctrine of Promissory Estoppel
Mindtree Limited vs. UOI (Karnataka High Court) CLR Editorial Notes: As a corollary to the Special Economic Zones Act, 2005 (˜SEZ Act™), section 115JB(6) and section 115-O (6) were inserted to ensure that the SEZs are exempted from paying Minimum Alternate Tax (MAT) on book profits and taxes on distributed profits [Dividend Distribution Tax ("DDT")].… Read More
Tags: DDT, Dividend Distribution Tax, Doctrine of Legitimate Expectation, Doctrine of Promissory Estoppel, Estoppel, Finance Act, Government, Minimum Alternate Tax, Section 115-O (6), Section 115JB(6), SEZ, Special Economic Zone, Special Economic Zones Act, United States
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