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
« News Headlines »
 Notification No.93/2018 - Customs (N.T.) Central Board Of Indirect Taxes And Customs
 Now don’t forget to file your income tax return Paid TDS?
 National Financial Reporting Authority Rules, 2018
 Jindal Metal Co. Vs. Principal Commissioner Of Income Tax, Delhi-21
 Goods And Service Tax (Gst) Concept & Status As On 1st November, 2018
 Notification No. 91 /2018-Customs (N.T.) Central Board of Indirect Taxes and Customs
 Top 5 must-knows for education loan tax deduction
 Notification No.90/2018 - Customs (N.T.) Central Board Of Indirect Taxes And Customs
 The Central Goods And Services Tax (Amendment) Bill, 2018
 New Forms for making an application under section 197 and/or section 206C of the Income-tax Act, 1961
 I-T dept proposes online filing of tax exemption application

New government to ammend retrospective Income-tax Act to boost investment sentiment
June, 05th 2014

The government is likely to modify the controversial retrospective amendments to the Income-tax Act and make them prospective, justifying the move as a necessary measure to improve investment sentiment.

The 2012-13 budget amendment that overturned a Supreme Court judgment in the Vodafone tax case has been singled out for undermining investor sentiment and was often cited as an example of India's aggressive tax regime.

The retrospective amendment was clarificatory in nature that said any foreign transaction that resulted in direct or indirect transfer of an asset located in India was liable to tax in the country.

This likely move will bring relief to British telecom major Vodafone and many other foreign companies that face tax liability running into thousands of crores of rupees because of the backdated modification in the law from 1961 when the Income-tax Act came into force.

The only hitch in making the law prospective is that the BJP had not opposed the amendment when the budget for 2012-13 was passed, but government officials said the move could be justified in the larger interest of an economy that needs foreign capital to fund the creation of infrastructure and finance the current account deficit.
"This needs to go... It has created huge uncertainty for foreign investors," said a senior government official. The final decision will be taken by finance minister Arun Jaitley. He has, in the past, been known to oppose any retrospective changes in law but it remains to be seen what position the government takes on the issue.

Former FM and now President Pranab Mukherjee had amended Section 9 of the Income-tax Act, 1961 in the 2012-13 budget retrospectively from the day of the commencement of the Act, sending a shockwave through the investor community.

The amendment was prompted by an adverse Supreme Court decision that overseas transactions that involved Indian assets could not be taxed. Indian tax authorities had sought to impose a principal tax liability of Rs 7,899.9 crore on Vodafone for failing to deduct tax on its $11-billion payment to Hutchison Telecommunications International for the acquisition of Hutchison Essar.

Vodafone moved court saying that the deal was done overseas and couldn't be taxed and eventually got a favourable verdict from the Supreme Court.

Soon after the amendment was made, Vodafone served a notice for international arbitration under the India-Netherlands bilateral investment promotion and protection agreement.

Though government attempted conciliation, the company's insistence on inclusion of another tax dispute relating to transfer pricing derailed the talks.

The Union Cabinet in April decided to withdraw the offer for conciliation, paving the way for raising the pending tax demand on the company. The government has to appoint an arbitrator by June 15 in response to the company's latest arbitration notice.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

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