Govt to seek Parliament nod on tax changes after settling Vodafone case
The government will bring clarity in the Vodafone tax case before approaching the Parliament for appropriate amendments in retrospective proposals brought in 2012-13 Budget, finance minister P Chidambaram said today.
“We have looked at the Shome committee recommendations. In a way it is tied with the Vodafone case. What we have decided is that whatever decision is taken on the basis of Shome committee report, we will go to Parliament after there is clarity on Vodafone case,” the minister said when asked about the notification of necessary explanations regarding the amendment of Section 9 carried out in the last budget.
In 2012-13 Budget, the then finance minister Pranab Mukherjee had introduced the retrospective amendment pertaining to Section 9, clarifying that asset of a foreign company will be deemed to have been situated in India if the share derives its value substantially from the assets in India.
The amendments spooked investors, after which the government formed a committee under Parthasarthi Shome, now an advisor to the finance minister, to look into the amendments.
Chidambaram ruled out rollback of the three per cent hike in excise duty on SUVs. He said that the auto sector, being impacted by high interest rates, needed some help and expressed confidence that the Reserve Bank will reduce interest rates.
On the fiscal deficit front, he said that when actual numbers come, the deficit might turn out to be lower than 5.2 per cent.
Warning tax evaders, he asked assessees to reveal their true income and pay taxes accordingly. As such, the department
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