“The Budget amendment is possibly attempting to plug a double benefit, which an Indian taxpayer liable under MAT/AMT could potentially avail if he is offsetting certain foreign tax credits against such MAT/AMT. Following the amendment, the MAT credit available to the Indian company for carry forward would need to be reduced to the extent the FTC claimed against MAT exceeds the FTC that would have been availed had it been subject to normal provisions. What remains unclear, however, is what would happen if a company is subject to MAT because of losses under normal provisions,”
Partner, Grant Thornton India LLP
This article apeared in Business Standard on 5th February, 2017.