The government has accepted Justice AP Shah Committee report on the Minimum Alternate Tax, MAT, on Foreign Institutional Investors, FIIs. <br/><br/>Addressing a press conference in New Delhi Tuesday, Finance Minister Arun Jaitley said government will not impose levy on FIIs prior to 1st April this year. The Finance Minister, however, said that the Shah panel's recommendations were applicable only for FIIs and Foreign Portfolio Investors (FPIs) and did not pertain to cases involving foreign direct investment (FDI).<br/><br/>In May, the government set up a panel headed by Justice AP Shah to suggest ways to resolve the MAT dispute as well as some other tax issues. Tax authorities had issued MAT notices to foreign portfolio investors last year which claim of 600 crore rupees. <br/><br/>MAT has been levied on all companies except those in infrastructure and power sectors, since late 1980s. Historically, foreign investors have not paid this tax because it was understood that only Indian companies were subject to it. . In 2010, a tax tribunal ruled that MAT was not applicable to companies that don't have a permanent establishment in India.