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: ACCOUNTING STANDARDS :: TDS :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: list of goods taxed at 4% :: due date for vat payment :: VAT Audit :: cpt :: Central Excise rule to resale the machines to a new company :: empanelment :: articles on VAT and GST in India :: VAT RATES :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
General »
 Number of companies paying tax over Rs 100 crore declines in 2013-14
 Tax and the dilemma of the self-employed
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA

Retrospective tax amendment will lead to resentment: Ex-SG
June, 04th 2014

The government will have to walk a fine line if it is really serious about reassuring foreign investors about the retroactive tax amendment. That's the word from former Solicitor General Mohan Parasaran. He has also warned that rescinding the order may blow up in the government's face.

Former finance minister and now President Pranab Mukherjee created global furore when he retrospectively amended the tax laws in the 2012-13 Budget. Now investors refer to the amendment - a knee jerk reaction to the apex court's blow in Vodafone tax battle - as ‘tax terrorism’

But Mohan Parasaran, who was the Solicitor General under the UPA regime, says rescinding the amendment will open a whole new can of worms.

Parasaran says, “The government can be bold and try to go to the parliament. But it is likely to cause resentment within the public. The common man's perspective on such developments is different from that of an economist, investor or corporate.”

Parasaran's solution is to leave the mess to the courts to clean up. After all, the retrospective amendment is already facing constitutional challenges before three high courts.

McLeod Russel has appealed against the tax in Calcutta High Court; IHC Mauritius and SABMiller have appealed in the Bombay High Court and Cairn India has moved the Delhi High Court.

Parasaran believes that the retrospective amendment will not survive these multiple challenges, but till the courts rule, the retrospective amendment remains the law of the land.

And as long as the law stands, the former Solicitor General says Vodafone’s new-found confidence in conciliation talks with the government may be a little naive.

“The I-T act does not provide for such a mechanism. And logically speaking, as long as the retrospective amendment holds field, where is the question of any conciliation or settlement, when the act speaks to the contrary.”

So the only headroom available to Vodafone may be to reach some kind of a settlement, and report the compromise to the adjudicating authority. But given the fact that both parties have to find a way to save face, this may be easier said than done.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

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