No more retrospective taxes, modi promises uk

1. No more retrospective taxes, Modi
promises UK business Photo
Seeks To Bury Ghost Of Vodafone
Row

3. Contd...
• London: PM Narendra Modi sought to end the fear of retrospective
taxation for good, telling investors that India will no longer resort to
such practices, agreeing that such measures had affected the
investment climate in India.“We have clearly articulated that we will
not resort to retrospective taxation and dem onstrated this position
in a number of ways. This includes not going for imposition of
minimum alternate tax of foreign portfolio investors. We have
rationalised the capital gains tax regime for real estate investment
trusts. We have taken several initiatives for transparency and online
processing of IP (intellectual property) administration,“ he said at
the India-UK Business Council meeting on Thursday .
• Modi's comments came in the UK where Vodafone is based. The
telecom giant was embroiled in a $2.5 billion tax dispute until
recently after the UPA government retrospectively amended the
law and levied a capital gains tax.

4. Contd...
• The UPA government had overruled a Su preme Court order and
levied a capital gains tax on Vodafone which had acquired Hutch's
telecom business in India. The taxation move had triggered
international criticism, including from British ministers and
prompted Vodafone to seek damages from the Indian government.
• The issue has lingered and is a major headache for the Modi
government which is trying to improve the investment climate.
• Sources present at the India-UK Business Council meeting said the
decision to ease FDI rules ahead of the Prime Minister's visit had
helped improve investor sentiment after the ruling BJP suffered a
big loss in the Bihar election. “There is more comfort after the new
rules for 15 sectors were announced. Investors are no longer
worried about the government's commitment to carry forward the
reform process,“ a source said.

5. Contd...
• Though senior ministers in the Modi cabinet have previously clarified on
retrospective taxation, a statement from the PM is expected to provide
added comfort to domestic and foreign investors at a time when the
government is keen drive up private investment that has not picked up to
the levels expected. “There were a number of regulatory and taxation
issues which were adversely impacting on the sentiments of foreign
investors. We have taken very decisive steps to remove a number of long
pending concerns,“ the PM said. He added that the government was
determined to make the tax regime predictable and transparent.
• “We want to make sure our tax regime is transparent and predictable. We
are also keen to see that genuine investors and honest taxpayers get quick
and fair decisions on tax matters,“ he said at another event.
• Modi said the steps taken by his government had helped push up FDI
inflows by 40% in the year so far compared with the corresponding period
of last year. “In just 18 months, we have successfully restored the
credibility of India in the eyes of global players.“

6. Parveen Kumar Chadha… THINK TANK
(Founder and C.E.O of Saxbee Consultants & Other-Mother
marketingandcommunicationconsultants.com)
Email :-saxbeeconsultants@gmail.com
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