sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
Direct Tax »
 ITR-4 launched on e-filing portal; total 3 ITRs available now
 CBDT directs income tax department to hold grievance redressal fortnight for taxpayers in June
 Income tax return form-2 in Java format released for e-filing for FY2017-18
 3 ITRs available now ITR-4 launched on e-filing portal
 Businesses, small taxpayers to gain from new direct tax code
 New direct tax code to benefit corporates, income tax payers
 CBDT releases ITR Form-4 for presumptive income from business and profession
 Know how you can save tax through various deductions under Section 80 Income Tax
 CBDT issues notification, seeks suggestions to bring more transparency in cross-national transactions
 CBDT seeks suggestions to bring transparency in cross-national transactions
 What to expect from new direct tax law

CBDT bats for penalty waiver in retro tax cases; boost for Vodafone?
November, 17th 2012

In the first indication of a softening of stance from revenue authorities on the controversial retrospective tax laws introduced in budget 2012, the country's apexBSE 0.00 % tax body, the Central Board of Direct Taxes or CBDT has recommended waiver of penalties in cases where tax laws are applied retrospectively, two government officials familiar with the development told ET NOW.

"An internal committee has finalized its report on the Shome Panel's recommendations on retrospective tax laws. It has favoured waiver of penalties in "appropriate cases" but has opposed waiver of the interest component. The report will be soon submitted to the Finance Ministry," said one of the two individuals cited above.

On October 8th 2012, the government appointed Parthasarathi Shome panel had recommended that in cases where retrospective tax laws are applied, adequate safeguards are needed in the form of interest and penalty waiver on the tax demands raised.

"In all cases where demand of tax is raised on account of retrospective amendment relating to indirect transfer...no interest...should be charged in respect of that demand so that there is no undue hardship caused to the tax payer," the panel said.

"Initially, the committee was in favour of rejecting both interest and penalty waivers, but a later a middle ground was reached. The interest component cannot be separated from the tax demand and thus cannot be waived off ," said a senior government official.

Tax experts feel if the CBDT's report is accepted and implemented by the Finance Ministry, then British telecom giant Vodafone's total tax bill in India will be reduced by nearly Rs 8000 crore rupees ie the penalty sought by the income tax department for failure to withhold tax on the 2007 acquisition of Hutchinson's mobile assets in India.

In October 2010, the tax department had slapped a Rs 11,218 crore tax notice ( including principal plus interest) on Vodafone. This lead to a protracted legal battle which ultimately ended with the Supreme Court ruling that the income tax department had no jurisdiction to tax the deal.

Budget 2012 sought to overturn the apex court order by retrospectively amending the tax laws on indirect transfer of assets.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Sitemap

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions