New Delhi: The government hopes that the amendment to the provision of retrospective taxation – which aims to ensure the prospective application of provisions – will end the old concern and help the company and the center make a new start after the two parties end litigation.
The above government sources told TII that the amendments transferred by Minister of Finance Nirmala Sitharaman on Thursday had tried to connect the final action by the Tax Authority to withdraw all cases and eliminate all requests for recovery to ensure that they can start the clean slate.
“We deal with public money so we also seek parliamentary approval to return money because we want to make a truly prospective amendment.
That is why we have suggested that there must be an effort to withdraw all litigation and the agreement to ensure that the principal is paid,” said Senior Ministry of Finance officials to TI.
Although many saw amendments as a result of two disadvantage verdicts by the International Courts, the government’s decision came as a surprise for most analysts.
Government sources say Prime Minister Narendra Modi wants a legal process to play and is clear that the problems needed to deal with.
In the past, the former Finance Minister Arun Jaitley described a retrospective amendment as mistaken.
In fact, in 2014, while presenting his first budget, Jaitley assured investors that the MOD government “would not usually bring retrospective change, which created a new obligation”, while indicating that the cases would “achieve a logical conclusion”.
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Sources argue that with an arbitration award, logical conclusion has been achieved, which encourages the government to move amendments.
“Ideally, the congress should be corrected but this government must do it.
This is the main decision of PM,” said the government’s main official.
Tax experts have welcomed their steps, saying it will provide a legal and final litigation that is needed.
“This clearly shows the government’s intention to employ the friendly image of Indian positive investors, continuing the momentum to create India as an interesting investment objective, thus promoting economic growth and faster work,” said Sanjay Tolia, a partner at the PW & Together Consultant Company ,
The government hopes to start the Clean Slate after a retro tax change
