India Inc should not ignore the impact of minimum alternate tax (MAT) provisions in income tax law while evaluating real estate investment trusts (REITs) as a business opportunity, say tax and industry experts.
Terming it as one of the several tactical and strategic aspects that need to be considered before taking the plunge into REITs, the experts say that in the developed world, owners of commercial properties — such as retail, office, industrial, hotels and healthcare — have traditionally adopted the REIT structure due to its inherent benefits.The benefits include single level of taxation, easier access to low-cost capital and higher valuation attributed by capital markets. The REITs market in the Asia-Pacific region was estimated to be about $205 billion in 2013. However, India till date has not been able to tap this funding opportunity.

Source - http://www.thehindubusinessline.com