Retrospective Tax Amendment

The draft rules say the Centre will not proceed with demands related to retrospective tax levy, provided that all companies withdraw cases against it

A bill that aims to end all retrospective taxation imposed on indirect transfer of Indian assets was passed by the Lok Sabha today amidst continuous protests by opposition over the alleged snooping through the Pegasus spyware and other issues.

The Government of India and British oil major Cairn Energy have had a long face-off. It has its origin in a retrospective tax amendment law, under which the company was asked to pay a tax liability by India. Cairn contested against the demand and this led to an arbitration case.

Tax raids based on unsubstantiated rumours or simply suspicion will be legit after the government's tweaks to the Income Tax law. But the changes will be effective retrospectively in an apparent turnaround by the government despite its promise not to do so. The amendment to Section 132 of the Income Tax Act dealing with searches by taxmen says that...

Tax raids based on an unsubstantiated rumour or suspicion is legit after the government has made changes to law retrospectively, going back on its own promise not to do so.

The scheme provides an opportunity for settlement of cases emanating from retrospective amendment of tax laws, by asking companies to pay the basic tax demand and get waiver on interest and penalty.

Government is hopeful of companies taking advantage of the dispute resolution scheme announced in the Budget today to resolve cases emanating from retrospective amendment of tax laws including Vodafone and Cairn.

Referring to the retrospective tax amendments by the UPA government, Mr Jaitley said "I have not been able to see the real colour of money as far as those taxes are concerned because some court somewhere has stopped it or quashed it. But what has happened in the process is that it has brought us a bad name".

UK Deputy Prime Minister Nick Clegg met Finance Minister Arun Jaitley on Monday and discussed various matters of mutual interest, including the retrospective tax amendment issue.

UK Deputy Prime Minister Nick Clegg today met Finance Minister Arun Jaitley and discussed various matters of mutual interest, including the retrospective tax amendment issue.

Mr Jaitley, who presented his maiden Budget on July 10, is being criticised by rating agencies for not repealing the retrospective tax amendment and not providing enough sops for the industry.

The controversial amendment in the Income Tax Act, empowering the government to raise tax demands on past deals, was pushed after the Supreme Court ruled in favour of UK-based mobile carrier Vodafone in a tax dispute with Indian authorities.

Economists on Tuesday asked Finance Minister Arun Jaitley to lower interest rate, rationalise subsidies, remove all cess and surcharge, do away with the retrospective tax amendments and scrap dividend distribution tax to revive investment cycle and promote growth.

A decision needs to be taken on going ahead with changing amendments before pending litigations, including that involving Vodafone, are resolved, sources said adding that the pending litigations would have huge implication on revenue.

British telecom major Vodafone in fighting a tax dispute with the government in a case related to its 2007 acquisition of Hutchison Whampoa's stake in Hutchison Essar.

The draft rules say the Centre will not proceed with demands related to retrospective tax levy, provided that all companies withdraw cases against it

A bill that aims to end all retrospective taxation imposed on indirect transfer of Indian assets was passed by the Lok Sabha today amidst continuous protests by opposition over the alleged snooping through the Pegasus spyware and other issues.

The Government of India and British oil major Cairn Energy have had a long face-off. It has its origin in a retrospective tax amendment law, under which the company was asked to pay a tax liability by India. Cairn contested against the demand and this led to an arbitration case.

Tax raids based on unsubstantiated rumours or simply suspicion will be legit after the government's tweaks to the Income Tax law. But the changes will be effective retrospectively in an apparent turnaround by the government despite its promise not to do so. The amendment to Section 132 of the Income Tax Act dealing with searches by taxmen says that...

Tax raids based on an unsubstantiated rumour or suspicion is legit after the government has made changes to law retrospectively, going back on its own promise not to do so.

The scheme provides an opportunity for settlement of cases emanating from retrospective amendment of tax laws, by asking companies to pay the basic tax demand and get waiver on interest and penalty.

Government is hopeful of companies taking advantage of the dispute resolution scheme announced in the Budget today to resolve cases emanating from retrospective amendment of tax laws including Vodafone and Cairn.

Referring to the retrospective tax amendments by the UPA government, Mr Jaitley said "I have not been able to see the real colour of money as far as those taxes are concerned because some court somewhere has stopped it or quashed it. But what has happened in the process is that it has brought us a bad name".

UK Deputy Prime Minister Nick Clegg met Finance Minister Arun Jaitley on Monday and discussed various matters of mutual interest, including the retrospective tax amendment issue.

UK Deputy Prime Minister Nick Clegg today met Finance Minister Arun Jaitley and discussed various matters of mutual interest, including the retrospective tax amendment issue.

Mr Jaitley, who presented his maiden Budget on July 10, is being criticised by rating agencies for not repealing the retrospective tax amendment and not providing enough sops for the industry.

The controversial amendment in the Income Tax Act, empowering the government to raise tax demands on past deals, was pushed after the Supreme Court ruled in favour of UK-based mobile carrier Vodafone in a tax dispute with Indian authorities.

Economists on Tuesday asked Finance Minister Arun Jaitley to lower interest rate, rationalise subsidies, remove all cess and surcharge, do away with the retrospective tax amendments and scrap dividend distribution tax to revive investment cycle and promote growth.

A decision needs to be taken on going ahead with changing amendments before pending litigations, including that involving Vodafone, are resolved, sources said adding that the pending litigations would have huge implication on revenue.

British telecom major Vodafone in fighting a tax dispute with the government in a case related to its 2007 acquisition of Hutchison Whampoa's stake in Hutchison Essar.