
Pranab's message to MNCs: India no tax haven
Finance minister Pranab Mukherjee on Tuesday offered no relief to British telecom major Vodafone on its five-year-old tax dispute with the Indian government, making it clear there was no rethink on the proposal to allow authorities to tax older corporate deals.
The remarks are seen as a message that the government is unlikely to budge from its position to clamp down on deals that are structured to evade taxes by creating a web of subsidiaries registered in offshore tax havens.
“There cannot be a situation that somebody will make money on an asset located in India and will not pay tax either in India or to the country of its origin,” Mukherjee said in his reply during the Finance Bill debate in the Lok Sabha. The bill was passed by a voice vote.
Vodafone had in January won a Rs 11,200-crore tax battle after the Supreme Court ruled it was not liable to pay any taxes under prevailing laws. The finance ministry then proposed in the budget to impose a retrospective provision for tax on some types of international mergers.
The government expects to collect Rs 35,000-40,000 crore by taxing older corporate deals.
“We are not in that desperate a situation that a country of 120 crore people will be treated as a tax haven like Cayman Islands, Isle of Man or Virgin Island,” Mukherjee said.
On the court’s verdict, he said: “The Supreme Court may interpret law, but Parliament equally has the legislative right to express its intention by making amendment to correct the judgment.”
The UK and US have cautioned that the tax proposal could dent India’s image as an investment hotspot.

News updates from HT: Cong-Left to share seats for Bengal polls
- Here are today’s top news, analysis, and opinion. Know all about the latest news and other news updates from Hindustan Times.

Border row: Maharashtra government releases old documentary to make its case

Delhi riots: Court dismisses bail pleas of Pinjra Tod activist Natasha Narwal
- Additional Sessions Judge Amitabh Rawat said in a case of conspiracy of such a large scale, not having a video was not so vital as generally conspiracy, by its very nature, is hatched in secrecy and not having videos of such a conspiracy was obvious rather than doubtful.

SC expresses displeasure over Centre's affidavit in civil services exam matter

With 1.9 lakh job vacancies, Telangana govt is working at 61% of total strength
- According to the pay revision committee's report, Telangana was also lagging behind in terms of population-workforce ratio, compared to many other states.

Covid-19 or border challenge, India capable on every front: PM Modi
- In his customary address at the National Cadet Corps rally, the PM said whether it was the protective cover of the vaccine or dealing with those who challenge India, the country was capable on every front.

Cong, Left agree to share 193 seats in Bengal assembly, to hold talks on rest
- On December 24, the All India Congress Committee (AICC) formally approved a tie-up with the Left parties in Bengal.

Farmers' protest: Tikait brothers differ, situation tense at Ghazipur border

Farmers’ protest ends in Noida as BKU faction quits Rashtriya Dalit Prerna Sthal
- The Bharatiya Kisan Union (Lokshakti) said it was ending the protest because it had lost direction.

India slips six places to rank 86 in corruption perception index 2020

Suspension of scheduled international passenger flights extended till Feb 28
- "However, international scheduled flights may be allowed on selected routes by the competent authority on a case-to-case basis," the Directorate General of Civil Aviation said. The suspension does not affect the operation of international all-cargo operations and flights specifically approved by it.

'Thank you for patience': Delhi top cop to staff on R-Day chaos. Read letter

Indian vaccines reflect scientists' hard work, PM's commitment: Naqvi

'India fulfilled its global responsibility': PM Modi's top quotes
