Govt drops UPA attempt to challenge fiat on Vodafone

January 29, 2015

vadafone tax

New Delhi, Jan 29: In a clear signal to global investors that India has moved to a fair and transparent tax regime, the government on Wednesday revoked the former United Progressive Alliance (UPA) government’s decision to challenge in the Supreme Court a Bombay High Court ruling in favour of Vodafone.

The decision not only gave the world’s second largest telecom firm a relief of Rs 3,200 crore in a tax dispute case with the government, but also sought to harbour hopes among 20 such multi-national companies facing similar disputes in India.

The Cabinet decision came just two days after Prime Minister Narendra Modi in the presence of US President Barack Obama assured the world investment community that India was moving fast on removing all ambiguities in its tax regime.

“This fruitless litigation could have been avoided by the previous government. We are only correcting the legacies of the past,” Telecom Minister Ravi Shankar Prasad told reporters after the Cabinet meeting.

In a 2010 case, the Income Tax (I-T) department had asked Vodafone to pay additional tax of Rs 3,200 crore stating that the telecom firm had undervalued its shares in its Pune BPO, Vodafone India Services, while transferring them to the parent company in Britain.

The tax authorities later issued a show cause notice against the company in January 2014 and passed an order asking it to pay the tax.

Vodafone then moved the Bombay High Court against the I-T department decision. The court said in its order in October 2014 that the UK-based telecom firm was not liable to pay income tax demanded in the case relating to transfer pricing.

Vodafone, the largest corporate investor in India, is facing several other tax disputes in the country.

“Investors’ confidence has been shaken in the past because of the very fluctuating tax policy. The government wants to convey a clear message to investors world over that this is a government where the decisions will be fair, transparent and within the four corners of the law,” the telecom minister said.

Reacting to the decision, Vodafone’s counsel said: “The government’s change of heart is a good massage to global investors”. But he maintained that the people were actually waiting to see a change on the ground and a change in the “mind set” of the tax department.

After talking to hundreds of CEOs at the India-US Business Summit two days ago, Finance Minister Arun Jaitley had said that he and the prime minister took pains to explain it to investors that India was seriously working on a investor-friendly tax administration.

*Decision not to file appeal taken at the highest level following advice by Attorney General Mukul Rohatgi

*Will help other MNCs like Dutch oil major Shell

*Shell too had got a favourable judgment in a transfer pricing case from Bombay HC

*Transfer pricing is the practice of arm’s length pricing for transactions between group companies based in different countries

*Decision to bring greater clarity and predictability for taxpayers and tax authorities

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News Network
April 5,2020

New Delhi, Apr 5: Joining efforts to fight COVID-19, the Defence Research and Development Organisation (DRDO) has designed a full-body disinfection chamber and a special face protection mask for healthcare professionals, officials said.

The special chamber called 'PSE' has been designed by Vehicle Research Development Establishment (VRDE), Ahmednagar, a DRDO Laboratory.

The walk through enclosure is designed for personnel decontamination, one person at a time. It is a portable system equipped with sanitiser and soap dispenser, officials said.

The decontamination is started using a foot pedal at the entry. On entering the chamber, electrically-operated pump creates a disinfectant mist of hypo sodium chloride for disinfecting, the DRDO said in a statement.

The mist spray is calibrated for an operation of 25 seconds and stops automatically indicating completion of operation. As per procedure, personnel undergoing disinfection will need to keep their eyes closed while inside the chamber, it said.

The system consists of roof mounted and bottom tanks with a total of 700 litres capacity. Approximately 650 personnel can pass through the chamber for disinfection until the refill is required, the DRDO said.

The system has see-through glass panels on side walls for monitoring purpose and is fitted with lights for illumination during night-time operations, it added.

This system can be used for disinfection of personnel at the areas of controlled ingress and egress such as entry and exit to hospitals, malls, office buildings and critical installations, officials said.

Also, Research Centre Imarat (RCI), Hyderabad, and Terminal Ballistics Research Laboratory (TBRL), Chandigarh, have developed face protection mask for healthcare professionals handling COVID-19 patients, the DRDO added.

Its light weight construction makes it convenient for comfortable wear for long duration. This design uses commonly available A4 size Over-Head Projection (OHP) film for face protection, it said.

One thousand face shields are being produced daily in TBRL and provided to Postgraduate Institute of Medical Education and Research (PGIMER), Chandigarh, it said.

Similarly, 100 are produced at RCI and these have been handed over to Employees' State Insurance Corporation (ESIC), Hyderabad. A demand of 10,000 shields has been received from PGIMER and ESIC hospitals based on successful user trials, the DRDO added.

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News Network
March 13,2020

Mumbai, Mar 13:  Investor wealth worth nearly Rs 12 lakh crore was wiped out in less than 15 minutes of trading on the stock exchanges on Friday, with the two benchmarks, the BSE Sensex and the NSE Nifty, crashing over 10 per cent.

The 30-share BSE Sensex plummeted 3,380.59 points, or 10.31 per cent, to 29,397.55. It hit an intra-day low of 29,388.97, falling up to 3,389.17 points.

Trading was halted for 45 minutes in the early session after the index hit its lower circuit limit.

The BSE and NSE benchmark indices, however, pared most losses with the Sensex trading 835.40 points, or 2.55 per cent, lower at 31,942.74, and the Nifty was down 253.25 points or 2.64 per cent at 9,336.90 at 10.40 am.

The mayhem on Dalal Street eroded investor wealth worth Rs 12,92,479.88 crore, taking the total m-cap to Rs 1,12,78,172.75 crore on the BSE at 1020 hours.

The m-cap of BSE-listed companies stood at Rs 1,25,70,652.63 crore at the end of trading on Thursday.

Traders said besides global selloff, incessant foreign fund outflows also weighed on investor sentiments.

On a net basis, foreign institutional investors sold equities worth Rs 3,475.29 crore on Thursday, data available with stock exchanges showed.

On the BSE, 1,279 scrips declined, while 193 advanced and 40 remained unchanged.

Volatility heightened in global markets as benchmarks world over went into panic mode, insinuating a freakish selloff.

Bourses in Shanghai dropped over 3.32 per cent, Hong Kong 5.61 per cent, Seoul 7.58 per cent and Tokyo cracked up to 7.97 per cent.

Wall Street lost 10 per cent in overnight trade.

More than 1,30,000 cases of the novel coronavirus have been recorded in 116 countries and territories, killing at least 4,900 people.

The number of coronavirus patients in India has risen to 74, as per the health ministry.

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News Network
April 7,2020

New Delhi, April 7: The government continued to take steps to contain the spread of coronavirus including a strategy of cluster containment as the cases continued to rise and Tuesday saw single-day largest jump of 722 positive cases.

The total number of positive cases reached 4,789 on Tuesday, the 14th day of lockdown.

According to the latest update of the Health Ministry, there are 4,312 active cases, 352 persons have been cured or discharged (one migrated) and 124 have died.

Maharashtra has the largest number of positive cases at 868 and also accounts for the largest number of deaths at 48. Tamil Nadu has 621 confirmed cases.

Thirteen persons have died in Madhya Pradesh and the same number in Gujarat.
The 21-day lockdown was announced on March 24 by Prime Minister Narendra Modi.

At the regular media briefing at 4 pm, Lav Aggarwal, Joint Secretary in the Health Ministry, said that the government is adopting a strategy for cluster containment.

"This strategy is producing positive results, especially in Agra, Gautam Buddh Nagar, Pathanamthitta, Bhilwara and East Delhi," he said.

Aggarwal said that a recent study by the Indian Council of Medical Research (ICMR) has shown that a person infected with coronavirus can infect 406 others in just 30 days if he does not follow the lockdown and social distancing norms.

He said no decision has been taken on extending the lockdown and urged against any speculation.

He said latest technology was being used for management of COVID-19 and there was real-time tracking of ambulances.

The official said the dedicated facilities for COVID-19 are divided into three parts -- COVID Care Centre, Dedicated COVID Health Centre and Dedicated COVID Hospitals.

He said that COVID Care Centres were for treating mild, very mild and likely to be COVID-19 patients. Hostels, hotels, school, and stadium can be used for this. "We have asked states to map it with COVID Care Hospitals and COVID Health Centre so that patients can be shifted if needed," he said.

The official said that COVID Health Centres were for treating COVID-19 patients of clinically moderate level of seriousness. "For this, fully functional hospitals will be used. A dedicated block of a fully functional hospital can also be used for this. The hospitals must have beds with oxygen support," he said.

Aggarwal said that dedicated COVID Hospitals were meant for severe and critical cases and these must be fully-equipped with ICUs and ventilators.
New coronavirus cases were reported on Tuesday from several states including Maharashtra, Madhya Pradesh, West Bengal, and Tamil Nadu.

The Ministry of Environment, Forest and Climate Change has issued an advisory about containing coronavirus in national parks, sanctuaries and tiger reserves in view of the spread of COVID-19 and a report about tiger being infected in New York. The Central Zoo Authority has also advised zoos in India to remain on high alert.

Here's a quick read on the COVID-19 related updates

1. The Indian Railways has prepared 40,000 isolation beds in 2,500 coaches and this work is ongoing in 133 locations across the country.

2. Madhya Pradesh Chief Minister Shivraj Singh Chouhan said he was willing to extend the lockdown in the state after the completion of 21-day period to save lives.

3. The government is monitoring the movement of pharmaceuticals closely and the movement of pharmaceuticals through trucks has stabilised in the country.

4. Under the 'Lifeline Udan' initiative, 152 flights have transported over 200 tonnes of cargo till April 6.

5. According to ICMR, testing of 1,07,006 people has been carried out till date and 136 government labs and 59 private labs are conducting tests in the country.

6. The Home Ministry said that the status of essential goods and services was by and large satisfactory in the country. Home Minister Amit Shah has issued directives to the states to ensure there is no hoarding or black marketing in any corner of the country.

7. The number of corona positive cases in Uttar Pradesh has reached 314. Of these, 168 patients are connected to Tablighi Jamaat, state Chief Minister Yogi Adityanath said on Tuesday.

8. The government has lifted restrictions on export of 24 pharmaceutical ingredients and medicines made from them.

9. Union Defence Minister Rajnath Singh said the Group of Ministers had "an extensive discussion on the prevailing situation post the lockdown" in the country. They also appreciated the Cabinet's decision to cut MP's salary for a year.

10. Central Zoo Authority has advised zoos in the country to remain on highest alertness, watch animals on 24X7 basis, using CCTV for any abnormal behavior or symptoms.

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