Asia Securities Industry And Financial Markets Association

A Hong Kong-based lobby group representing global banks and investors is considering challenging a controversial tax in the Supreme Court, escalating a row that has eroded investor confidence in Prime Minister Narendra Modi's government.

The existing Supreme Court case, filed by Mauritius-based Castleton Investment Ltd, is seen as a test case on the legitimacy of extending the so-called minimum alternate tax (MAT), which was intended to ensure companies inside India paid a minimum tax rate, to foreign investors' gains.

The finance minister statements indicate that the government may not tax P-note holders but could tax P-note issuers. Mukherjee said that he was not interested in knowing the identify of P-note holders. This means, P-note issuers could withhold tax before passing on economic benefits to P-note holders.

A Hong Kong-based lobby group representing global banks and investors is considering challenging a controversial tax in the Supreme Court, escalating a row that has eroded investor confidence in Prime Minister Narendra Modi's government.

The existing Supreme Court case, filed by Mauritius-based Castleton Investment Ltd, is seen as a test case on the legitimacy of extending the so-called minimum alternate tax (MAT), which was intended to ensure companies inside India paid a minimum tax rate, to foreign investors' gains.

The finance minister statements indicate that the government may not tax P-note holders but could tax P-note issuers. Mukherjee said that he was not interested in knowing the identify of P-note holders. This means, P-note issuers could withhold tax before passing on economic benefits to P-note holders.