India Inc. Seeks Resolution of Other Retro Tax Issues

As Indian Plans to rescind the indirect transfer of assets amendment, several companies have reached out to the government seeking similar reprieve from other changes in the tax framework that were retrospective.

The companies are seeking that the government relooks at changes made in tax laws that resulted in tax demands retrospectively and led to litigation. This includes a major change made in this year’s budget, tax experts said.

“In the last few years, several tax regulations have been introduced that are retrospective in nature. These include ones around goodwill and slump sale regulations announced this year, and other changes in assessment regulations which need to be withdrawn or the retrospective bit removed, or this will only lead to more litigation,” said Girish Vanvari, founder of tax advisory firm Transaction Square.

“The government has been making retrospective amendments and many times this has had a huge impact on Indian companies but because there is no recourse other than challenging it constitutionally, which is hard to do. If the government really wants to showcase, they mean business, they should be giving clarity around these retrospective changes,” said Abhishek Goenka, partner, Aeka Advisors, a tax advisory firm.

Taken a retrospective change made in tax regulation in this year’s budget for instance.

This year’s budget proposal will see companies that undertook mergers, acquisitions, slump sale or corporate restructuring that resulted in creating goodwill their profits and earnings per share dip. S-ET

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *