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 Information Technology (IT) and IT Enabled Services (ITES) SEZs during the last two years is as under:-

The proposal for review of imposition of Minimum Alternate Tax (MAT) was taken up by the Government and there has been no decision to reconsider the same at present.

This information was given by the Union Minister for Commerce and Industry, Shri Anand Sharma in a written reply in the Lok Sabha today.

DS/RK

(Release ID :94831)

Minimum Alternate Tax applicability extended to SEZ developers and units, keeping book profits within alternate corporate tax charge. MAT has been extended to Special Economic Zone developers and units effective 1 April 2012, bringing their book profits within the corporate alternative minimum tax regime; a government review proposal was considered but no decision to reconsider MAT applicability to SEZs has been taken.