India’s Vodafone decision eases tax worries for Shell, others | Reuters

This action demonstrates the new pro-business attitude of Modi’s government.

“India’s decision to drop a tax dispute with Vodafone Group Plc(VOD.L) is likely to mean relief for Royal Dutch Shell PLC(RDSa.L) and others caught in similar, protracted battles, as the government tries to attract much-needed foreign investment.

A Shell logo is seen at a petrol station in London January 31, 2013. REUTERS/Luke MacGregor/Files

India’s image as an investment destination has been tarnished by a reputation for red tape, unpredictable rules and a tax office long seen as over zealous in its pursuit of foreign firms. Prime Minister Narendra Modi‘s government, seeking to reboot a slowing economy, has sought to change that.

Late on Wednesday, the government said it would not appeal a Bombay High Court ruling in favour of Vodafone, the biggest foreign investor in India.

“It’s a departure from the past when all the high-value tax cases were always litigated,” said Himanshu Shekar Sinha, a partner at law firm Trilegal.

“With this, the government has sent a clear direction that appeals should not be filed routinely.”

Tax lawyers said they expected cases such as those involving IBM (IBM.N), Nokia Oyj (NOK1V.HE), Microsoft Corp (MSFT.O) and others could now be resolved instead through negotiation.”

via India’s Vodafone decision eases tax worries for Shell, others | Reuters.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Law of Unintended Consequences

continuously updated blog about China & India

ChiaHou's Book Reviews

continuously updated blog about China & India

What's wrong with the world; and its economy

continuously updated blog about China & India

%d bloggers like this: