The United Kingdom on Monday raised concerns over the Indian government’s plan to retrospectively tax Vodafone like deals and warned that such a move could hurt the country’s investment climate.
“We are concerned about the proposed budget measure. Not just because of its impact on one company, Vodafone, but because we think it might damage the overall climate for investment in India,” UK Chancellor of Exchequer George Osborne said after a meeting with finance minister Pranab Mukherjee on Monday.
In the Finance Bill, 2012, Mukherjee has proposed changes to Section 9 of the Income Tax act, 1961, virtually amending the law to ensure that cross-border deals are made liable to pay capital gains tax in the country.
If passed by the Parliament, it would have a implications on Rs 11,000 crore tax dispute between the Birtish telecom firm and the income tax department.
“We are concerned about the proposed budget measure. Not just because of its impact on one company, Vodafone, but because we think it might damage the overall climate for investment in India,” UK Chancellor of Exchequer George Osborne said after a meeting with finance minister Pranab Mukherjee on Monday.
In the Finance Bill, 2012, Mukherjee has proposed changes to Section 9 of the Income Tax act, 1961, virtually amending the law to ensure that cross-border deals are made liable to pay capital gains tax in the country.
If passed by the Parliament, it would have a implications on Rs 11,000 crore tax dispute between the Birtish telecom firm and the income tax department.
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