Apropos, the move to retracts retrospective taxation by the Indian government by Taxation Laws (Amendment) Bill, 2021 is undoubtedly a welcome move that is likely to attract the interest of numerous foreign investors besides several business conglomerates world over. Retrospective taxation, an evil strongly deprecated and denounced even by the Indian Supreme Court in many of its celebrated and path-breaking pronouncements will certainly implant freedom from tax-terrorism that continued to haunt, besiege and intimidate the concerns of global multinational firms operating in the country.
Vodafone group PLC besides Cairn Energy PLC were under the cloud, strongly belittled and dis-credited on account of the retrospectively glued taxation mechanism on indirect transfer of assets outside India which was inducted way back about nine years ago through the route of the Finance Act, 2012.
The vengeful move to tame judicial propriety by overturning the very crux of the law settled by the highest Indian court was absolutely uncalled for specifically in light of the very fact that India also lost internationally at the arbitration court with an un-abating aim to secure preferential rights in recovering a whopping demand running in more than 20,000/- crores from Vodafone Group PLC besides others.
What could be even more embarrassing for the government was another fact pertaining to the attachment order secured by Cairn Energy PLC with the anticipation to procure counter-claim of Indian assets lying abroad wherein Indian government was asked to pay damages worth $1.2 billion to the UK firm.
Nevertheless, the move of the Indian government to redact, nullify and obliterate retrospective taxation is commendable, exemplary and laudable wherein restrictive recourse to abnormally tax entities through back route is immersed and buried on the lines of propriety, moral rectitude and probity.