After years of dithering, the Centre has finally done away with the infamous retrospective tax law introduced in 2012 by then finance minister Pranab Mukherjee. This law had been described as a key impediment to doing business in India. Two recent orders by international courts of arbitration that ruled against the Indian government in such cases—relating to Vodafone Plc and Cairn Energy Plc—amplified the outcry from the global investor community against this law and the embarrassment the government faced because of it.
On August 9, Rajya Sabha approved the Taxation Laws (Amendment) Bill, 2021. The decision to finally bite the bullet will help the Centre project India as investor-friendly. This is crucial given how badly the country needs foreign investment to get the economy going again, struggling as it is with low growth, low private investment, and massive job losses resulting from the pandemic.
The retrospective tax law, brought in via an amendment to the Income Tax law, was implemented after the Supreme Court, in January 2012, ruled in favour of Vodafone Plc in a case relating to its acquisition of Hutchison’s India assets in 2007 through a web of intermediate companies. The government had raised a $2 billion (currently over Rs 14,600 crore) tax claim against the British telecom firm. After the Supreme Court verdict, the government amended the Income Tax law, allowing it to tax mergers and acquisitions between foreign companies with a bulk of their assets in India.
This story is from the August 23, 2021 edition of India Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 23, 2021 edition of India Today.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
India Gets A Growth Shock
The Country's Gdp Has Hit Its Lowest Point In Nearly Two Years, Intensifying The Government's Challenge To Tackle The Ongoing Unemployment Crisis
A Looming Pilot Crisis
With Airlines Looking To Expand Their Fleet And The Country Unable To Produce Flyers Fast Enough To Keep Up With The Escalating Demand, Indian Airlines Could Be Heading For A Pilot Shortage
The Gut Alarm
New research shows how unhealthy food and lifestyle habits have damaged Indian guts, causing a raft of serious physical and mental ailments
FROM CULTIVATION TO COUTURE
The ‘peasant’ who built a £5bn empire clothing the super-rich, Bruno Cucinelli’s clothes are now the must-haves for the royalty of Hollywood and Silicon Valley
A DESIGN DELIGHT
India Today Spice gets an exclusive first look at the Volkswagen ID.4 E-SUV, months before its arrival in India.
THE BIG PICTURE
Coming home to the movies has become easier. However, the new approach to home entertainment is much more nuanced, devoid of extra cables and a confusing tech-jungle. That’s where Optoma AZH430UST, a projector that stays so close to the wall, it’s practically a decoration, fits in. But don’t let its proximity fool you, it’s packed with features.
HAUTE OFF THE RUNWAY
Lakme Fashion Week presented collections from over 45 designers who explored new materials, experimented with silhouettes, and embraced sustainability with their collections. Here are some standout moments from LFW 2024.
THE END OF INNOCENCE
Sudeep Chakravarti's Fallen City is an in-depth account of a double murder that shook the nation in 1978
The Middle PATH
Nityan Unnikrishnans latest solo show at Chatterjee Lal, Mumbai, is a depiction of our attempt to cope with the crumbling realities of our lives
A FIGHT TO THE FINISH
In Ground Zero Bastar, the war against Maoists registers big successes in 2024, with blanket presence, tech-enabled ops and a no-holds-barred strategy
