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
Imposition of MAT on SEZs
The provisions of Minimum Alternate Tax (MAT) have been made applicable to Special Economic Zone (SEZ) Developers and Units with effect from 1st April, 2012. The imposition of MAT on SEZs has brought the book profits of SEZ units and developers under the ambit of Sec 115JB of the I-T Act, 1961. The investment in… Read More
Tags: Anand Sharma, Business process outsourcing, Crore, Information technology, MAT, Minimum Alternate Tax, SEZ, Special Economic Zone