'Govt seeking to amend controversial tax rules in February'
Posted on: 04:59 PM IST Jan 07, 2013
New Delhi: The government is likely to approach Parliament in February to water down retrospective tax rules that damaged investor confidence, two finance ministry officials said on Monday, in a move that may help settle UK-based Vodafone Group Plc's long-runnning $2 billion tax dispute.
Vodafone, the largest overseas corporate investor in India, has repeatedly clashed with Indian authorities over taxes since it bought Hutchison Whampoa's local mobile business in 2007.
The government was heavily criticised by the corporate sector for introducing the tough tax rules in 2012 at a time India was suffering a sharp economic slowdown and trying to encourage investment.