Lok Sabha passes Taxation Laws (Amendment) Bill, 2021
New Delhi: The Lok Sabha passed Taxation Laws (Amendment) Bill 2021 to nullify Retrospective Tax in which Vodafone and Cairn Energy took the government to court.
While introducing the Taxation Laws (Amendment) Bill 2021 in Lok Sabha, Finance Minister Nirmala Sitharaman said, "Keeping up the commitment of BJP that we don't believe in the retrospective application of tax, we are fulfilling that word by bringing this amendment".
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With the amendment bill's passing, the central government seeks to withdraw the application of retrospective tax introduced in March 2012, by Pranab Mukherjee, the then Finance Minister in the UPA government.
Retrospective tax is an additional charge on the transactions done in the past. It was introduced by the UPA-led government in 2012.
"This was a long pending issue. The Government has taken a timely decision. It is a welcome step", said RBI governor Shaktikanta Das on the Taxation Laws (Amendment) Bill 2021.
US-India Strategic and Partnership Forum (USISPF) applauded the government's move to withdraw the retrospective law relating to tax on indirect transfers.
Mukesh Aghi, president and CEO of the USISPF said, "Yesterday's Bill introduced by the Finance Ministry will only encourage more international investments into India and is a welcome relief for companies who have long invested in the country. The USISPF is proud to have worked on this issue for many years".
(With PTI inputs)
