The Supreme Court today rejected the review petition filed by the government in the Vodafone Essar case. In January this year, the Supreme Court had held that there was no tax liability with respect t
Dear Ponga Pandit ,I dont know the position in mauritius or pakistan or any other country but surely in india Parliament has a right to get in a retrospective ammendment and it has done so not only now but many number of times and it will keep doing it for a long time in the future as parliament in india is supreme as far as law making process is concerned and no one can interfere in law making process of parliament of india .India has achieved freedom from british rule after a long struggle which happened a lot before you and i were born .It is not a failed state like pakistan or afghanistan or a small nation like mauritius .India is the worlds largest democracy with one third population of the world living here which means every 3 persons are indian out of 10 living on this planet .All this means that the Indian Parliament also is equally powerful like the country and has to think about public welfare and democracy .India is not like any other small nation where peanuts population of the world lives equal to the population of city of delhi .So dear ponga when you live in a big country like india you have to think big and do big .its not like mauritius or cayman island which has no significant existance on world map.Thus this ammendment will not be strictly applicable just to multi national companies when it is passed but its a general retrospective ammendment which will apply to all transactions of all companies even of Indian origin and plug the loophole of tax evasion in income tax act .
The counsel's argument that Vodafone in 2007 could not have dreamt that a retrospective amendment would be introduced ...does not hold water! You can ask any person doing business in India and he/she/it will tell you that whenever an assessee in India takes a tax position here on any issue he/she/it always has dreams/nightmares that even after winning at apex court, the govt will come up with a retroactive amendment to undo the relief.
The judgement of the court is right .But in general I feel that foreign companies need to be taxed on indian shores as they do business in india and they have been evading tax since a long time for last 55 years .The parliaments move to ammend the income tax act is really praise worthy .The foreign companies have been exploiting india since a long time and doing big time business and making profits in india and getting away without paying a single penny .Since independance this figure has crossed lakhs of crores of rupees so this loophole has made india loose billions of dollars .The proposed ammendment will bring in billions of dollars and give a level playing fielsd at par with indian companies who are taxed .Since independence and even before independance since days of british east india company india has been exploited enough for last 65 years post independence and 150 years pre-independance where crores of money was simply looted pre-independance and india was pushed into poverty by british empire and east india company .Now post independance if we carry out the same way and make no changes to our laws what is the difference then between british india and todays india ruled by indians ? If we fear multi national companies in a post independent india in the name of globalisation and allow them to loot india and not make any changes to the law then we are surely not truly independant in real sense and we still are subject to opression from multi national companies.The real independance comes only after we indians really learn to live with self respect and our parliament makes changes to the laws as it is going to do now without carrying on the same laws which the british left.If ammendments are not made by indian parliament to british laws or in that case any obsolete law even post independence it would be against the principles of free india for which lakhs of freedom fighters have given their life and blood for without caring for themselves or their families or caring for money or their personal benifit.In todays days when everyone wants money and sells off his honesty for a little money it is worth learning from these selfless freedom fighters like mahatma gandhi or bhagat singh or many others what is selfless service to the nation
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