20 February 2014
i had some confusion...u read that talks of vodafone with government had collapsed in respect of reconciliation regarding tax dues...bt what i failed to understand is that vodafone had already won the case in supreme court...and even though gov had.made.retrospective amendments ...vodafones case cnt b reopened in any section of income tax act as already decided by a higher authority...so how this issue of 20000 cr. again arose when vodafone had already won the case in SC
20 February 2014
INDIAN CABINET HAS THE POWER OF NEGOTIATION ON ANY DISPUTED MATTER BY INTRODUCTION OF RETROSPECTIVE AMENDMENT. SO THE MATTER IS LIKE THIS
India's cabinet Tuesday approved a proposal to negotiate a settlement to a tax dispute between Vodafone Group VOD.LN -0.29% PLC and local authorities, according to a cabinet minister.
The cabinet accepted Vodafone's offer to settle the tax dispute through a legal process called conciliation, in which a judge or a group of judges moderates settlement discussions between parties.
The offer came with a condition, however. The settlement discussion will be held in India and not before the UN Commission on International Trade Law, as offered by Vodafone, Finance Minister P. Chidambaram told reporters.
The government has slapped a tax charge of about $2 billion on Vodafone related to its $11.2 billion majority stake purchase in the Indian operations of Hutchison Whampoa Ltd. 0013.HK -0.88% in 2007.
It claims Vodafone was liable to deduct tax before paying Hutchison. Vodafone, however, contends that tax wasn't due as the deal was between two foreign entities, which didn't come under Indian laws.
Vodafone's stand was backed by India's Supreme Court in January 2012. The government, however, made a retrospective change to its tax laws in March last year to allow it to issue the tax claim.
Vodafone and Indian officials met multiple times to try and resolve the dispute.
20 February 2014
INDIAN CABINET HAS THE POWER OF NEGOTIATION ON ANY DISPUTED MATTER BY INTRODUCTION OF RETROSPECTIVE AMENDMENT. SO THE MATTER IS LIKE THIS
India's cabinet Tuesday approved a proposal to negotiate a settlement to a tax dispute between Vodafone Group VOD.LN -0.29% PLC and local authorities, according to a cabinet minister.
The cabinet accepted Vodafone's offer to settle the tax dispute through a legal process called conciliation, in which a judge or a group of judges moderates settlement discussions between parties.
The offer came with a condition, however. The settlement discussion will be held in India and not before the UN Commission on International Trade Law, as offered by Vodafone, Finance Minister P. Chidambaram told reporters.
The government has slapped a tax charge of about $2 billion on Vodafone related to its $11.2 billion majority stake purchase in the Indian operations of Hutchison Whampoa Ltd. 0013.HK -0.88% in 2007.
It claims Vodafone was liable to deduct tax before paying Hutchison. Vodafone, however, contends that tax wasn't due as the deal was between two foreign entities, which didn't come under Indian laws.
Vodafone's stand was backed by India's Supreme Court in January 2012. The government, however, made a retrospective change to its tax laws in March last year to allow it to issue the tax claim.
Vodafone and Indian officials met multiple times to try and resolve the dispute.
CAclubindia
