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2010 (7) TMI 50 - AUTHORITY FOR ADVANCE RULINGSMAT - Minimum Alternate Tax - Whether MAT is applicable only to Domestic Companies - Whether MAT is applicable to foreign companies that have a physical business presence in India - Whether MAT is applicable on sale of shares of a listed company on which STT is applicable - If the provisions of MAT are applicable, whether TDS is required to be deducted u/s 195 - Held that: - The income, which does not have a source in India, cannot be made part of the book profits. The annual accounts, including the P&L Account, can not be prepared as per the first proviso to section 115JB(2) in respect of the world income and laid before the company at its AGM in accordance with the provision of Section 210 of the Companies Act. The speech of Finance Minister and the memorandum explaining the provision also become out of sync if the meaning of "company" appearing in section 115JB is adopted as 'foreign company' - as the applicant did not have a place of business in India it was not required to prepare its accounts under section 594 read with section 591 of the Companies Act, 1956. - That being so the applicant could not have prepared its accounts in accordance with the provisions of Part II and III of Schedule VI of the companies Act, 1956 - Section 115JB is not designed to be applicable to the case of the applicant, a foreign company, who has no presence or PE in India. - section 115JB of the Act are not applicable on the sale of shares of a listed company Timken India Limited, by the applicant, which has suffered securities transaction tax and accordingly, tax exempt under section 10(38) of the Act.
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