The Taxation Laws (Amendment) Bill, 2021, which seeks to do away with the contentious retrospective provision to levy tax on indirect transfer of Indian assets, has been approved and returned by the Rajya Sabha to Lok Sabha amid a walkout by opposition parties, including the Congress, TMC and DMK. The Lok Sabha had passed the legislation as ‘Money Bill’ last week.
Now after the return by the Rajya Sabha, all tax demands made on companies like Cairn Energy and Vodafone using the 2012 legislation on indirect transfer of Indian assets prior to May 28, 2012, will be withdrawn.
Finance Minister Nirmala Sitharaman said, “This (bill) is appealing enough and putting an end to this ghost which we have been carrying all these while from 2012.”
She said, “I seek support of the House to make India look very clear, transparent and fair land with respect to taxation laws. Therefore, this whole thing about retrospective amendment bill, which was brought in, since then we were bearing the negativity of this all over the world.”