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To avoid disputes like the Vodafone tax case in future, government is
contemplating incorporation of provisions on taxation of overseas deals from the
stalled Direct Taxes Code (DTC) Bill in the Budget for 2012-13.
"The Direct Taxes Code Bill contains a proposal to tax similar transactions... We are planning to include that provision in the Finance Bill so that in future, such issues do not arise," a top Finance Ministry official said.
In a judgement that will have revenue implications of about Rs 11,000 crore, the Supreme Court last week set aside the Bombay High Court's decision in favour of the Income Tax Department on the Rs 11,000 crore tax demand on Vodafone International Holdings following its overseas acquisition of interest in Hutchinson-Essar Limited in 2007.
The apex court had also asked the I-T Department to return Rs 2,500 crore deposited by Vodafone International Holdings within two months, along with 4 per cent interest
"The Direct Taxes Code Bill contains a proposal to tax similar transactions... We are planning to include that provision in the Finance Bill so that in future, such issues do not arise," a top Finance Ministry official said.
In a judgement that will have revenue implications of about Rs 11,000 crore, the Supreme Court last week set aside the Bombay High Court's decision in favour of the Income Tax Department on the Rs 11,000 crore tax demand on Vodafone International Holdings following its overseas acquisition of interest in Hutchinson-Essar Limited in 2007.
The apex court had also asked the I-T Department to return Rs 2,500 crore deposited by Vodafone International Holdings within two months, along with 4 per cent interest
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