InvestorQ : What is the latest on the retrospective tax legislation? When is it being fully scrapped?
Dawn Cherian made post

What is the latest on the retrospective tax legislation? When is it being fully scrapped?

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Mitali Bhutta answered.
4 months ago
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The government has already announced that the retrospective tax will be scrapped. Now it has also put out draft regulations for public comments. The detailed draft rules released to support the legislation making it clear that there will be a clear quid pro quo which companies have to adhere in such cases. The legislation makes withdrawal of all legal cases against the government as a precondition for the removal of retrospective taxation.

In addition, the party will also have to give an undertaking that they will not initiate any legal cases in this regard in the future too. This will bring an end to some high profile retrospective tax cases like Cairn and Vodafone, which are still under the judicial purview. The government also committed that any amount collected as retrospective from corporates will be refunded to them without interest.

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