Retrospective Tax Law

Indian online gaming firms planning to relocate overseas to avoid a new 28 percent tax on the sector run the risk of violating the country's foreign exchange laws, Vivek Johri, head of the indirect taxes' department, said on Thursday. New Delhi does not plan to implement the tax retrospectively, he said, in response to speculation it could do so.

With tax reforms such as faceless assessment taking roots, 2021 will go down as the year that pivoted the tax administration in a country aspiring to become the world's favourite investment destination.

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.

In a huge move to settle international disputes running into billions of dollars, the government on Thursday said it will change tax laws to do away with demands for past payments. Companies like Cairn Energy will get refunds, the government said.

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.

India is entangled in more than 20 such overseas arbitration cases - the most against any country - brought by companies including Vodafone, Deutsche Telekom and Nissan Motor Co for disputes over retrospective tax claims and breach of contracts.

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.

In January 2014, Cairn was slapped with a Rs 10,247-crore assessment notice on alleged capital gains it made on a 2006 internal reorganisation of India business.

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.

Dismissing notions of contradiction between ministerial assurances and departmental actions on retrospective taxation, Union Minister Jayant Sinha on Thursday said Income Tax department has to follow "due process of law" in the Rs 8,500-crore Vodafone transfer pricing case.

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.

Slapped with Rs 10,247-crore tax assessment using the retrospective tax legislation, British oil major Cairn Energy plc has asked Finance Minister Arun Jaitley to do away with the legislation in the Budget next month so as to restore faith of international investors in India.

Retrospective tax law has hurt the country, as it scared away investors, Finance Minister Arun Jaitley on Saturday said and stressed on the need for maintaining the standards of fairness in taxation.

Indian online gaming firms planning to relocate overseas to avoid a new 28 percent tax on the sector run the risk of violating the country's foreign exchange laws, Vivek Johri, head of the indirect taxes' department, said on Thursday. New Delhi does not plan to implement the tax retrospectively, he said, in response to speculation it could do so.

With tax reforms such as faceless assessment taking roots, 2021 will go down as the year that pivoted the tax administration in a country aspiring to become the world's favourite investment destination.

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.

In a huge move to settle international disputes running into billions of dollars, the government on Thursday said it will change tax laws to do away with demands for past payments. Companies like Cairn Energy will get refunds, the government said.

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.

India is entangled in more than 20 such overseas arbitration cases - the most against any country - brought by companies including Vodafone, Deutsche Telekom and Nissan Motor Co for disputes over retrospective tax claims and breach of contracts.

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.

In January 2014, Cairn was slapped with a Rs 10,247-crore assessment notice on alleged capital gains it made on a 2006 internal reorganisation of India business.

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.

Dismissing notions of contradiction between ministerial assurances and departmental actions on retrospective taxation, Union Minister Jayant Sinha on Thursday said Income Tax department has to follow "due process of law" in the Rs 8,500-crore Vodafone transfer pricing case.

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.

Slapped with Rs 10,247-crore tax assessment using the retrospective tax legislation, British oil major Cairn Energy plc has asked Finance Minister Arun Jaitley to do away with the legislation in the Budget next month so as to restore faith of international investors in India.

Retrospective tax law has hurt the country, as it scared away investors, Finance Minister Arun Jaitley on Saturday said and stressed on the need for maintaining the standards of fairness in taxation.