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Economy

SEZ Developers On The MAT

Minimum Alternate Tax (or MAT) will apply for SEZ developers as well. Not just the real estate players, even companies like Opto Circuits had gone into developing SEZs. The funda was that if you developed an SEZ, or if you were a unit in an SEZ, you paid no MAT at all, regardless of how much profit you had made. This is a useful way to move money around and make it non-taxable.

Developers in SEZs will now pay MAT as well.

Also such SEZ developers paid no dividend distribution tax (DDT); but from 1 June 2011, they will have to pay 15% DDT.

This affects way too many stocks, if you ask me. I need to find out how to make a list of them without killing myself.

  • Gopinath Mavinkurve says:

    >Deepak, those playing the SEZ game may have learnt – too late however, that the government plays the game like we did when we were kids – begin the game and formulate the rules to suit you as you go along! A 15-year tax holiday was a carrot dangled that so many could not resist. Nobody asked the question – which tax provision stays for 15 years?