The finance ministry is working towards an amicable resolution of the retrospective tax amendment issue that could provide some relief to British telecom giant Vodafone, which is facing a tax liability of Rs. 11,200 crore.
The proposals, to be based on the recommendations of the Parthasarathi Shome panel, are likely to be introduced in the Finance Bill to be presented by finance minister P Chidambaram in the Budget for 2012-13.
"The government is constantly addressing concerns of investors. There will be amicable resolution of the issue (Vodafone tax case) in the Budget," a top finance ministry official told PTI.
The Shome committee had suggested that the government should either withdraw the retrospective tax amendment or waive penalty in case taxes had to be recovered.
Meanwhile, the revenue department had issued a notice to Vodafone asking it to clear tax dues. The company replied maintaining that no taxes are payable.
Last April, Vodafone had threatened the government with arbitration proceedings.