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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Bloomberg
July 27,2020

New Delhi, Jul 27: India’s coronavirus epidemic is now growing at the fastest in the world, increasing 20% over the last week to more than 14 lakh confirmed cases, according to Bloomberg’s Coronavirus Tracker.

Infections in the South Asian nation of 130 crore people have reached 14.3 lakh, including 32,771 deaths, India’s health ministry said, with daily cases close to a record 50,000 on Monday. India is only trailing the US and Brazil now in the number of confirmed infections, but its growth in new cases is the fastest.

Maharashtra, Tamil Nadu, Andhra Pradesh and Karnataka are among the states where the maximum number of daily cares are being reported. The world’s second-most populous country has been ramping up testing, with 515,472 samples taken on Sunday, according to the Indian Council of Medical Research.

Still, India and Brazil have some of the world’s lowest testing rates, with 11.8 tests and 11.93 tests per 1,000 people respectively, compared to the US with 152.98 tests per 1,000 and Russia with 184.34, according to Our World in Data, a project based at the University of Oxford in the UK.

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Agencies
May 27,2020

Lucknow, May 27: Uttar Pradesh chief minister Yogi Adityanath has taken a U-turn, two days after he declared that permission would be needed if other states employ workers from UP.

The issue sparked a major controversy and an official spokesman has now said that the government would not include this clause of 'prior permission' in the bye-laws of the Migration Commission.

The government spokesman also said it was working on modalities to set up the commission to provide jobs and social security to migrant workers returning to the state. It has named the migration commission as the "Shramik Kalyan Aayog (Workers welfare commission).

About 26 lakh migrants have already returned to the state and an exercise to map their skills is being carried out to help them get jobs.

Yogi Adityanath has discussed the modalities for setting up the commission and told his officers to complete the skill mapping exercise in 15 days.

A senior official of Team 11, said, "The chief minister discussed the modalities for setting up the commission, as well. There will be no provision requiring other states to seek UP government's prior permission for employing our manpower. The commission is being set up to provide jobs and social security to the workers. We will also link the migrants to the government schemes to provide them houses and loans etc."

Yogi Adityanath said a letter should be sent to all state governments to find out about migrant workers wanting to come back to Uttar Pradesh.

Earlier, the chief minister, while speaking at a webinar on Sunday, had said, "The migration commission will work in the interest of migrant workers. If any other state wants UP's manpower, they cannot take them just like that, but will have to seek permission of the UP government. The way our migrant workers were ill-treated in other states, the UP government will take their insurance, social security in its hands now. The state government will stand by them wherever they work, whether in Uttar Pradesh, other states or other countries."

The statement had sparked a row with some political leaders and parties questioning the move.

Former Congress president Rahul Gandhi sharply criticized Adityanath's stand, saying the workers were not the chief minister's personal property.

"It is very unfortunate that the chief minister of Uttar Pradesh views India in such a way. These people are not his personal property. They are not the personal property of Uttar Pradesh. These people are Indian citizens and they have the right to decide what they want to do and they have the right to live the life they want to live," he had said.

Maharashtra Navnirman Sena chief Raj Thackeray had also taken on Adityanath and said that if UP insists on "permission" before other states can employ workers from there, "then any migrant entering Maharashtra would need to take permissions from us, from the Maharashtra state, our police force too."

Meanwhile, the government spokesman said, "The chief minister is deeply moved by the condition of migrants. They have been treated badly by other states. So, when the chief minister spoke about the need for seeking UP government's permission, he did so as a guardian for workers. It's only his concern for the migrants that came out as a political statement."

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News Network
April 4,2020

Mumbai, Apr 4: As many as six Central Industrial Security Force (CISF) personnel stationed at Mumbai airport in Maharashtra have tested positive for coronavirus, taking the total number of positive cases among the central force to 11. The first case of a CISF jawan being diagnosed with the viral disease was reported on March 28. 

After the first case, the armed police force reported four more cases of COVID-19 among the personnel stationed at the airport on Thursday. On the same day, the CISF collected samples of 146 staff and sent them to Kasturba hospital for testing. The results, which arrived on Friday, recorded six more COVID-19 cases among, reported news agency.

The personnel were posted at Kharghar adjoining Mumbai, a senior official told news agency.

As of now, there are 14 COVID-19 cases in Panvel Municipal Corporation (PMC) area in Mumbai. Kharghar comes under the civic body's jurisdiction.

All the 146 CISF personnel were shifted to a quarantine centre at a facility at Kamothe reported the Times of India.

Maharashtra reported 67 new COVID-19 cases, taking the total tally to 490. A total of 26 deaths have been reported in the state.  

In the meantime, the Centre on Friday said there is no shortage of medical supplies across the country to fight COVID-19 outbreak.

"The government of India is making sure that all the essential medical supplies are in place to fight COVID-19. Sixty-two lifeline Udan flights transported over 15.4 tons of essential medical supplies in the last five days," Union Minister for Chemical and Fertilisers DV Sadanada Gowda said in a tweet.

The government is also paying full attention to the manufacturing activities of essential items like pharmaceuticals and hospital devices. For this, over 200 units in Special Economic Zones (SEZs)  are operational, he added.

"A Central Control Room has also been set up for close monitoring of the distribution of essential medical items and to address logistic related issues," Gowda said.

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