According to P. Chidambaram, Minister of Finance, the Income-tax Department of India will not take any hasty decision in the Vodafone India tax case, say news reports.
Income-tax Department of India is examining tax matters pertaining to Vodafone India, wherein the operator is liable to pay capital gain tax to the tune of $2.3 billion for a transaction which it carried out in 2007. Vodafone acquired 67 per cent stake in Indian telecom company Hutchison Essar in 2007 from with Hong Kong-based Hutchison Whampoa outside India.
Chidambaram reiterated that prior to taking any decision in the Vodafone tax case, Income-tax Department will take into account the Supreme Court verdict on the case and it will also consider the legal opinion of the Attorney General of India.
Moreover, the government will await the recommendations of the Shome Committee, which has been established to suggest changes in the Retrospective Amendment Law before amending it. The Shome Committee is expected to submit its recommendations on the subject by end-September.
