UK Dy PM meets Jaitley, discusses retro tax issue

Tags: News
UK Deputy Prime Minister Nick Clegg today met Finance Minister Arun Jaitley and discussed various matters of mutual interest, including the retrospective tax amendment issue.

Jaitley, according to sources, explained the government's position on the retrospective tax amendments with reference to the tax cases of Vodafone and Cairn Energy.

The government has maintained that the legal process will continue in the Vodafone case, while the high level committee of the Central Board of Direct Taxes (CBDT) will look into cases where the legal process has not yet been initiated.

Besides the taxation matters, the issues concerning investment in sectors like energy, aerospace and education also figured during the discussion.

Earlier in the day, Clegg met Prime Minister Narendra Modi.

British telecom giant Vodafone is facing a tax liability of about Rs 20,000 crore because of retrospective tax amendment carried out by the previous UPA government. The dispute will be resolved through arbitration.

As regards Cairn Energy tax case, the high level committee of the CBDT will take a view with regard to the resolution of the dispute. It is not yet clear whether it would be resolved by the Committee or through the legal process.

The energy company faces a potential tax demand on an alleged Rs 24,500 crore of capital gains it made when in 2006 following transfer of its India assets to a new company, Cairn India..

In his budget speech in July, Jaitley had clarified that the Government would not ordinarily bring about any change retrospectively which could create fresh tax liability.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • If the first 17 editions of Saarc were tragedies, Kathmandu was a sham

    Rarely has a regional grouping such as the South Asian Association of Regional Cooperation (Saarc) promised so much and delivered so little.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Varun Dutt

By the power of wind, let there be light

In India, the development of wind power began in the ...

Zehra Naqvi

Being unrealistic can be good for you

Depression is a term that most people use very casually ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture