Vodafone’s Rs11,200-cr tax bill to get a relook: Chidambaram
21 Feb 2013
The issue over telecom services provider Vodafone having to pay retrospective tax for its overseas acquisition of Hutchinson Whampoa's Indian operations is likely to be resolved next week, finance minister P Chidambaram indicated today.
Chidambaram said the Cabinet would discuss a bill of Rs11,200 crore that former finance minister and now President of India Pranab Mukherjee had sought to slap on the acquisition through a change in tax rules.
"Not today. Probably next week," Chidambaram told reporters on the sidelines of a function in Delhi when asked about the issue.
Chidambaram had earlier said the Cabinet would take a final view on the Vodafone tax case after taking into account the opinion of the Attorney General G E Vahanvati.
"As far as Vodafone is concerned, they had written to us proposing conciliation. We have written back saying that yes your request will be considered by the competent authority. So the matter will go to the cabinet," he had said earlier.
The government is working towards a solution based on recommendations of the Parthasarathi Shome panel, which has suggested that either the government withdraw the retrospective tax amendment or waive interest and penalty in case it had to recover the taxes.
