‘Govt decision on Vodafone case will lift investor sentiment’

By: |
New Delhi | January 29, 2015 8:10 AM

The government deciding not to appeal against a high court order in Vodafone case will help in correcting perception...

The government deciding not to appeal against a high court order in Vodafone case will help in correcting perception about tax department and lift the sentiment of global investors, industry said today.

“We believe that it is a very appropriate decision and this will go a long way in correcting the perception of the tax administration being adversarial. It will help in creating a conducive tax environment, specially for the overseas investment community,” Ficci Secretary General Didar Singh said.

“This decision will also help in uplifting the positive sentiments of the domestic industry further,” he added.

The decision on Vodafone clearly demonstrates courage on the part of government to resolve issues upfront, Assocham Secretary General D S Rawat said.

“It will lead to a big lift in sentiment among global investors,” he said.

In a significant development, the government today decided not to appeal against a Bombay High Court ruling that Vodafone was not liable to pay tax demand of Rs 3,200 crore in a transfer pricing case.

The High Court in its October 10, 2014 order had given a big relief to the UK-based mobile service provider by ruling that it is not liable to pay an income tax demand of Rs 3,200 crore in a case relating to transfer pricing.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Airtel accepts 4-year moratorium on spectrum, AGR payments
2Govt signs share purchase agreement with Tata Sons for Rs 18,000-cr Air India deal
3Lack of coal forcing many NRS consumers to stall operations, Coal Consumers’ Association of India says