CBDT formally tells UK’s Vodafone of India’s surrender to its tax demands
17 Jun 2013 10:33 PM GMT
The Central Board of Direct Taxes (CBDT) has formally written to British telecom major Vodafone, agreeing to enter into a non-binding conciliation to resolve the long-standing tax dispute.
'The Income-Tax Department has written to Vodafone, agreeing to enter into a non-binding conciliation to resolve the long-standing tax dispute' said a senior CBDT official.
Both sides will soon appoint representatives to carry out the negotiations, he said further.Seeking to resolve the long-standing tax dispute with Vodafone, the Cabinet earlier this month had approved a proposal for non-binding conciliation with the British telecom major, the outcome of which will ultimately be vetted by Parliament.
‘We (have) accepted the offer of Vodafone to enter into a non-binding conciliation. The outcome of the non-binding conciliation will be brought back to the Cabinet.If both sides (Vodafone and the government) agree on the outcome of the non-binding conciliation then the matter will be taken to Parliament by an amendment to the Income Tax Act,’ Finance Minister P Chidambaram had said.
The minister had added that no timeframe has been set for conclusion of the conciliation proceeding. The conciliation will be under the Indian arbitration law and not under the United Nations Commission on International Trade Law as sought by Vodafone.
'The Income-Tax Department has written to Vodafone, agreeing to enter into a non-binding conciliation to resolve the long-standing tax dispute' said a senior CBDT official.
Both sides will soon appoint representatives to carry out the negotiations, he said further.Seeking to resolve the long-standing tax dispute with Vodafone, the Cabinet earlier this month had approved a proposal for non-binding conciliation with the British telecom major, the outcome of which will ultimately be vetted by Parliament.
‘We (have) accepted the offer of Vodafone to enter into a non-binding conciliation. The outcome of the non-binding conciliation will be brought back to the Cabinet.If both sides (Vodafone and the government) agree on the outcome of the non-binding conciliation then the matter will be taken to Parliament by an amendment to the Income Tax Act,’ Finance Minister P Chidambaram had said.
The minister had added that no timeframe has been set for conclusion of the conciliation proceeding. The conciliation will be under the Indian arbitration law and not under the United Nations Commission on International Trade Law as sought by Vodafone.
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