Proposed tax law change 'clarificatory', says Pranab
Washington, April 20 (IANS) Amid growing criticism from various quarters over the proposed retrospective changes in the tax law, Finance Minister Pranab Mukherjee has said that changes in the legislation would be just "clarificatory" in nature.
During his meeting with the US Treasury Secretary Timothy Giethner Thursday, Mukherjee clarified that the proposed legislation was not aimed at opening up old cases.
According to an official statement released after the meeting, the US treasury secretary raised the issue of the proposed tax amendment during the meeting.
In this regard, Mukherjee informed that the tax changes proposed are not substantive but clarificatory in nature as the changes reiterated only the intent of the legislation, a finance ministry statement said.
During the meeting, Mukherjee pointed out that as per the provisions of the Income Tax Act, 1961, no tax case can be opened beyond six years.
In the union budget for 2012-13 last month, Mukherjee proposed to amend the Income Tax Act retrospectively to allow authorities to tax global merger and acquisition transactions involving Indian assets and shares.
The proposed amendment is seen as a tool to bring under tax net the overseas transactions like Vodafone-Hutchison.
The Supreme Court recently rejected the IT department's Rs.11,000 crore ($2.2 billion) tax demand on $11 billion Vodafone-Hutchison deal saying Indian tax authorities do not have jurisdiction over overseas transactions.
The finance minister clarified that the "tax cases which have already been assessed and finalised up to April 1, 2012 cannot be reopened".
"Indian tax laws are very clear that the companies making capital gains from the assets located in India will have to pay taxes either in the country of their origin or in India. It is not a case of double taxation but ensuring that companies that are liable to pay tax must pay some tax," the finance ministry said.
Read More: Supreme Court | Udhampur District Court Ndtso | Civil Court | Indian Press | Matri Indian Antartic Station | Alandur(reopened W.e.f.6.6.05) | Indian Institute Of Technology | R.n. Mukherjee Road | Treasury Building | Indian Research Po | Income Tax Building | Udaipur Court So | Khowai Court | Indian Nation | Patna High Court | Barh Court | Jamui Court | Indian School Of Mines | Sakchi Court | Ranchi Court | Pranab Mukherjee
NOT ENOUGH REASONS TO BAN IPL, SAYS N SRINIVASAN
May 19, 2013 at 10:25 PM
"BCCI DOESN___T COMES UNDER RTI, SAYS BCCI BOSS "
May 19, 2013 at 10:09 PM
"WILL TAKE ACTION AFTER GETTING REPORT FROM DELHI POLICE: SHUKLA "
May 19, 2013 at 10:08 PM