On Tuesday the government ruled out the rethinking on the issues made on Vodafone. Pranab Mukherjee, the Finance Minister in the Lok Sabha said a strong message that the multinational campaign against the Vodafone tax and he clearly stated that the India should never make the tax in such a way so as attract the foreign investment.
He also emphasized that the parliament has the right to correct the judgment of the Supreme Court and to make any further amendments. He also added that the parliament will not allow the situation to avoid paying tax by operating them to the tax haven.
There never exist a situation that someone makes the profit (money) and having their assets in India and neither paying the tax to India nor to its country of their origin. This situation can be better handled by taking the guidance by the DTAA (Double Taxation Avoidance Agreement).
Mukherjee said that the assertion on proposing the amendment to tax on the Vodafone tax deals rethinking must be ruled out because it is unfair for an organization to produce profit India using the resources by not paying the tax. By the IT Act (Income Tax) proposed with budget has rights to amend with the deal and tax issue on Vodafone.
The campaign of international business and domestic industry are against the move and this would no way affect the foreign investment, Pranab confirmed. This hour long speech was the reply on the finance bill which happened to be a debate topic in Lok Sabha.
He stated this with the past history as in 2007 the acquisition of Hutchison stake in the Hutchison Essar with the British telecom major it was not liable to pay the tax, this was the judgment of the Supreme Court but however the bill was passed on later. Tax on Vodafone is like combating against black money.