The government’s move to raise the minimum alternate tax (MAT) from 10 per cent

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to 15 per cent of the book profits of a company has not gone down well with Indian industry. Through MAT, the government ensures that companies do not fully avoid taxation by claiming various deductions.

R Shankar Raman, executive VP, finance, L&T said, “The hike in MAT will burden the companies with extra tax outgo and negate all other tax concessions.”

“The cash flows of many companies would be impacted,” K R Girish, partner, direct taxes, KPMG, said. Ketan Dalal, executive director, tax and regulatory services, PricewaterhouseCoopers had similar take on the issue.

Amit Burman, vice-chairman, Dabur India, said “MAT would lead to higher tax outgo and erode benefits accrued from the removal of fringe benefit tax.”