New Delhi: With Lok Sabha passed the bill aimed at ending all retrospective taxation, the leader of the senior Congress and former Finance Minister P Chidambaram Friday said he was happy that the problem had been problematic. For eight years it ended.
“Bill’s Tax Law (Amendment), 2021” was passed by Lok Sabha on Friday.

At that time it was also passed by Rajya Sabha, all tax demands made in companies such as Cairn Energy and Vodafone using the 2012 Law on non-direct transfer of Indian assets before May 28, 2012 will be withdrawn.

“In the withdrawal of retrospective tax (vodafone), I am happy that we have ended the problems that have bothered us for 8 years,” Chidambaram said in a tweet.

The Finance Act 2012, which changed various provisions of income tax laws, 1961 with a retrospective effect, containing provisions intended for taxes every increase in stock transfers in non-Indian companies, which obtained a substantial value of the underlying Indian assets, such as Vodafone’s transactions with Hutchison in 2007 or the internal reorganization of the Indian business carried out by Cairn Energy in 2006-07 before registering in the local stock.

In addition to creating uncertainty in the minds of investors, retrospective taxes in recent months canceled by the International Arbitration Court in two high-profile cases – Vodafone groups of UK telecommunications giant and oil producers.