UK's chancellor of the exchequer George Osborne will take up the Vodafone tax issue with finance minister Pranab Mukherjee.
In an interview with CNBC-TV18, UK's business secretary Vince Cable said that Osborne would discuss the Vodafone tax issue with FM. He added that India needed to send a message to UK investors clarifying tax matters.Cable said the telecom operator had made large investments in India.
Vodafone has been asked by Indian tax authorities to pay tax for its
$ 11.2 billion acquisition of a controlling stake in one of India's largest cellphone companies in 2007. Vodafone has on its part taken a strong legal position challenging India's income tax department's jurisdiction to tax the deal, which was structured as a transaction between two corporate entities outside India.
In his discussions with the finance minister, Osborne is expected to also discuss opening up retail and financial services in India.
Cable said that a flexible immigration system for freedom of movement for Indian professionals was called for however an overall immigration cap was the need of the hour.
Cable is pushing for an early conclusion in free trade agreement (FTA) by the year-end.