Latest Expert Exchange Queries
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) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: Central Excise rule to resale the machines to a new company :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: form 3cd :: TDS :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: due date for vat payment :: articles on VAT and GST in India :: empanelment :: ACCOUNTING STANDARD
 
 
Budget Extravaganza »
 How presenting the Budget early seems to be paying off already
 Budget advancement helps Centre, states start spending early
 Five things that you can expect from the Mumbai civic budget today
 GST all set for July 1 rollout but casts shadow on state budgets
 Income-Tax collection revised in Rajasthan budget
 No new taxes likely in Maharashtra Budget
 H.P. budget devoid of any financial prudence
 GST, demonetisation todecide budget priorities
 Railways to come up with mini-budget tomorrow
 Budget today, but GST kills the tax suspense
 Budget 2017 does little to expand taxpayer base, salaried still bear brunt of taxes

Budget may bring relief to retro-tax victims
June, 19th 2014

On June 9, President Pranab Mukherjee, while addressing a joint sitting of the Parliament, outlined the new government’s economic vision, and said it would “embark on rationalisation and simplification of the tax regime to make it non-adversarial and conducive to investment, enterprise and growth”.

The irony must not have been lost on those present for it was one of Mukherjee’s own decisions -- when he was finance minister in the previous UPA government -- during budget 2012 that not only sent shockwaves through India Inc but is also now perceived by many to have contributed greatly to the investor nervousness that followed during the subsequent economic downturn.

Then, the government had carried out a retrospective amendment to the Income Tax Act that resulted in the creation of multi-billion-dollar liabilities arising out of several business decisions taken in the past.

Key among these were tax demands that were served upon multinationals Vodafone, Shell and Nokia that ran into thousands of crores -- these were then contested and court cases ensued since.

Along with corporates, the BJP then rightly criticized the then government’s move, accusing it of indulging in “tax terrorism” and saying the decision to lay retrospective claims chased away jittery foreign investors.

Even during the election trail, Narendra Modi had said the government shouldn’t take decisions with retrospective effects, adding that such “defeated the purpose” of creating confidence in the economic system.

With BJP now at the helm, finance minister Arun Jaitley will now have a chance to walk the talk.

The issue was also reportedly a key discussion point in a recent meeting of corporate captains and the finance minister recently, with the former calling for a “non-adversarial and conducive tax regime”.

Already, there have been reports the government is likely to modify the controversial amendment that led the way to retrospective tax demands.

Any such move, while letting go of a claim of about Rs 30,000 crore for the government, would go a long way in boosting investor confidence in the country.

In fact, Vodafone India, one of the most high-profile victims of the retrospective tax demand, had recently made it clear it would consider coming out with an initial public offering once the case was settled.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Careers

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