New Delhi: The day after making a daring decision to memo all retrospective tax demands and refund money collected, Prime Minister Narendra Modi on Friday said the move showed its government’s commitment to provide the stability of the investment climate business and the consistency of policy.
Speaking at a meeting with the industry to increase Indian exports, Modi said exporter knew the importance of policy stability.
“The decision to eliminate retrospective taxation shows the government’s commitment (to provide a stable investment regime) and policy consistency,” he said.
His government on Thursday was introduced at Lok Sabha, bills for retrospective tax memo that had scuted foreign investors and dents with the third largest reputation in Asia.
India lost a high profile arbitration initiated by companies such as Vodafone Group PLC and Cairn Energy PLC opposed return tax retribution and risked their assets abroad seized to enforce the court award.
‘Bill’s taxation law, 2021’ passed by Lok Sabha on Friday and is expected to be taken by Rajya Sabha next week.
“Exporters who do business in various countries know the importance of stability,” Modi said, referring to the decision to eliminate retrospective taxation.
This bill provides a withdrawal of tax demands made on “indirect transfers of Indian assets if the transaction is carried out before May 28, 2012 (i.e., the day of the retrospective tax law appears).” “It is also proposed to restore the amount paid in these cases without interest in it,” said the bill.