Vodafone's Rs. 11,000-crore tax avoidance ball in cabinet court
Finance minister P Chidambaram said the cabinet would look into the Rs. 11,200 crore Vodafone tax case involving retrospective taxation to take a final decision on its settlement and whether there should be any conciliation.india Updated: Mar 01, 2013 01:08 IST
Finance minister P Chidambaram said the cabinet would look into the Rs. 11,200 crore Vodafone tax case involving retrospective taxation to take a final decision on its settlement and whether there should be any conciliation.
Earlier, the telecom major had written to the finance ministry on the issue and sought a conciliatory settlement on the controversial tax issue that hurt investors because capital gains pertaining to a past period were reviewed based on new rules.
"There is a proposal that is being looked into on a conciliatory approach, the cabinet will take a decision," Chidambaram said after his budget speech.
"It is important that we reach an amicable solution as far as the Vodafone issue is concerned as this would lead to positive investor sentiment, which is crucial at this point," Chandrajit Banerjee, director-general, CII, told Hindustan Times.
Vodafone faces a tax liability of Rs. 11,200 crore following the purchase of Hutchison Whampoa's stake in its Indian telecom business in 2007.
The minister had said earlier that a decision would be taken on Vodafone's concern after deliberating upon all aspects, which include the recommendations Parathasarthi Shome panel on indirect transfer of assets.