New Delhi, Aug 9 (UNI) The Rajya Sabha on Monday returned the Bill seeking to scrap the retrospective tax imposed on indirect transfer of Indian assets amid walkout by main Opposition Congress, DMK and TMC.
With returning of the money bill, tax demands made on companies like Vodafone and Cairn Energy using the retrospective tax provision added through Finance Act, 2012 could be withdrawn.
Lok Sabha had passed the Bill last week.
Replying on the debate in Upper House, Finance Minister Nirmala Sitharaman said that the bill puts an end to the ghost which was being carried from 2012.
She also said that the bill provides for no payment of interest on refunds and companies seeking to end the dispute would not pursue further appeals or litigation.
The Minister said that in three cases the government would have to refund the amounts held by it.
“We are not paying any interest and that is very clearly part of the Act,” she noted.
Sitharaman said that in case of Cairn Energy, the refund would be to the extent of Rs 7879.73 crore while in case of Vodafone the refund would be to the tune of Rs 44.74 crore.
In the third case, the refundable amount would be approximately Rs 48 crores.
Industry captains and tax experts have hailed the government move terming it investor-friendly which would enhance the image of the country globally.
Replying to the discussion, the Finance Minister said that she was confident that litigants would find the provisions very useful.
The Taxation Laws (Amendment) Bill proposes to amend the Income-tax Act, 1961 so as to provide that no tax demand shall be raised in future on the basis of the said retrospective amendment for any indirect transfer of Indian assets if the transaction was undertaken before 28th May, 2012.
Commenting on the proposed legislation, Nangia Andersen Chairman Rakesh Nangia said, “With the proposed amendment, the government has demonstrated its pragmatic and investor friendly approach, by withdrawing the retrospectivity in the amendment on indirect transfers. It has chosen to honour the verdict of the Supreme Court by giving up claims on taxes due under such covered indirect transfers of Indian assets.”
UNI NK SHK1947