Minimum Alternate Tax issue still not sorted out as Budget nears: KPMG

KPMG said the issue of minimum alternate tax (MAT) as part of the Income Computation and Disclosure Standard (ICDS) has not been addressed yet though the countdown for the annual Budget has begun.

ICDS, likely to be notified alongwith the Budget, is applicable for computation of income chargeable under the head 'profits and gains of business or profession' or `income from other sources' and not for the purpose of maintenance of books of accounts.

The Finance Ministry issued a draft on ICDS on January 8, inviting comments from the public.

"Our concern is that MAT as part of ICDS has not been addressed by the government as yet," KPMG deputy head of audit and global head of accounting advisory services, Jamil Khatri, said here, talking to media on the sidelines of KPMG IFRS conference.

"How will the MAT liability change once ICDS came into picture. That question is still open and the government can think over it," he added.