Page 21 - Vodafone

Letters: Olive branch to MNCs

The government has extended an olive branch by waiving penalty and interest to multinationals like Vodafone and Cairn for one-time settlement of tax disputes arising out of retrospective law, but one isn't sure if the companies will accept it.Revenue secretary Hasmukh Adhia's assertion that the government can't do away with the retrospective law, which was brought in by the United Progressive Alliance government, speaks of its political implications. Undoing the law, though legally permissible, would mean foregoing demands running into thousands of crores of rupees in tax component alone. It would be a political hot potato uniting the Opposition to sharpen knives against the ruling dispensation for what would be perhaps rightly seen as the government's willingness to be arm-twisted by the handful of powerful multinationals on the pretext of creating an environment for facilitating foreign investments. Also, what is equally intriguing is the absence of any legal challenge to the law by

Tax demand on Vodafone, Cairn cannot be disputed: CBDT

As long as retrospective amendment remains valid, demand of tax against the companies remains valid, said CBDT Chairman

I-T Act does not provide for arbitration on tax matters: Amar Gahlot

Notices can be issued by tax authorities for various reasons. One such reason can be to effect recovery. This is what Vodafone is facing lately, even when the matter is before arbitration. The moot question, hence, would be - can the department issue a recovery notice, when the dispute is pending before an arbitration panel? The legal answer to this would be a certain 'yes'.Once a tax has been determined by revenue authorities as 'payable', it can be recovered, even coercively. The pendency of the case, even before the high court or Supreme Court, does not prevent the recovery of tax. The only remedy is to get the recovery 'stayed' by a court.It is noteworthy that the Income-tax Act does not provide for any arbitration on tax matters. International arbitrations are generally invoked to protect investments running in astronomical figures - as is the case with Vodafone, which has resorted to the India-Netherlands Bilateral Investment Treaty. This arbitration certainly does not put a lega

Vodafone to invest Rs 6,000-cr in Maharashtra

Says investments will help increase the number of people employed by the company to 15,000 over the next few years

Committed to India as long term investor: Vodafone

The company also said that it enjoys a constructive relationship with India