Which of the following statements is/are correct regarding Minimum Alternate Tax (MAT)?
1. Foreign companies with income sources in India are liable under MAT
2. It is not applicable to infrastructure and power sectors
3. MP Shah committee was set up review MAT issue
Select the correct answer from the codes given below:

Answer: [D] 1, 2 & 3

All the above statements are correct. MAT is a way of making companies pay minimum amount of tax. It is applicable to all companies except those engaged in infrastructure and power sectors. Incomes arising from free trade zones, charitable activities, investments by venture capital companies are also excluded from the purview of MAT. However, foreign companies with income sources in India are liable under MAT. The union government has appointed MP Shah Committee to review and recommend issues relating to MAT.

This question is a part of GKToday's Integrated IAS General Studies Module