Leading industrialist and Essar Group chairman Shashi Ruia has warned of an adverse impact on FDI inflows in India if its taxation laws with various countries remain ‘ambiguous’.
“The Government (of India) is signing a spate of treaties with other countries. But all this will come to nought if the treaties are ambiguous and open for departmental interpretation,” he said during an address at the Indo-American Chamber of Commerce here late last evening.
Incidents of tax claims by authorities will lead to litigation by companies which will have a “negative impact” on foreign direct investment (FDI) flows into India, he added.
“We need an upgradation in our taxation policies…You will ask why this person is bringing this up today. I paid up to $1 billion in tax and it is not a good feeling…Not a very happy occasion.”