Reacting to the passage of the Taxation Laws (Amendment) Bill 2021, RBI governor Shaktikanta Das said, “This was a long pending issue. The government has taken a timely decision. It is a welcome step,” ANI reported.
Some Background on Retrospective Tax Law
The retrospective tax law, which was introduced in 2012, was used to heap huge tax demands on companies, including Vodafone and Cairn Energy, for transactions that had taken place prior to 28 May 2012.
The new Bill provides for a refund of the amount paid, without interest.
British energy major Cairn Energy, on Thursday, said that it has noted the proposal in Parliament and said, “We are monitoring the situation and will provide a further update in due course,” BloombergQuint reported.
The firm had, on 23 December 2020, won an international arbitration case against the Indian government over a tax dispute. Prior to this, the Vodafone Group had in September 2020 won an international arbitration case against the levying of retrospective…