DIRECT TAXES
| Vodafone back to square one Sat, 17 Mar 2012 00:21:00 +0530 |
| Business Standard Economy policy News The finance minister has opened a can of worms — or tax cases. A clarification to the Income Tax Act said transactions between foreign entities which hold assets in India will now be taxed in India, and that too, retrospectively. The most high profile case is the 2007 transaction of British major Vodafone Plc, as it bought out Hutchinson's stake in Indian entities. The company is still celebrating a favourable Supreme Court verdict which said since the law does not specify it, the transaction cannot be taxed. The case, which could result in Rs 11,297 crore to revenue authorities’ coffers, may now be re-opened. The immediate government reaction was that no new move will be made in the Vodafone case.Finance Secretary R S Gujral told reporters that the finance ministry will not make a fresh demand as a review petition is pending in the Supreme Court. |
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