Upcoming retrospective taxation withdrawal rules: FM Sitharaman

Finance Minister Nirmala Sitharaman said on Monday that the rules for the recent tax amendment bill would soon be worked out.

“We will have to wait until the rules are set under the recent tax reform bill,” she said when interacting with reporters here.

The Tax Laws (Amendment) Bill 2021 was passed by Parliament in the recently concluded monsoon session, to eliminate the contentious retroactive tax claim provisions and its passage could end the very tense tax disputes with the UK companies Cairn Energy and Vodafone Plc.

The Bill amended the Income Tax Act 1961 to provide that no tax claim will be made in the future on the basis of the said retrospective amendment for any indirect transfer of Indian assets if the transaction was undertaken before May 28, 2012 – the date on which the budget bill was passed by Parliament in 2012.

Regarding the issue of GST compensation, Sitharaman said that if the collection of GST revenue continued in this way, the Center would be able to pay compensation in accordance with the agreement.

She noted that the Center will need to consult with member states of the GST Council to assess the situation of repayment of loans beyond five years of compensation which ends in June 2022.

Regarding the high fuel prices, the minister said that the NDA government is paying for the reduction in the prices of petroleum products under the government of Manmohan Singh, due to the interest and principles to be repaid on the oil bonds of this period.

Sitharaman said that as of March 31, 2021, there was Rs 1.31 lakh crore in principle outstanding and Rs 37,340 crore in interest to be repaid on these oil bonds.

“We should have published a white paper in 2014 listing everything we inherited from the previous government. Oil bonds were a big part of it. The previous government had cut prices but this burden had to be taken on by the marketing companies. oil (WTO) through these oil bonds, ”Sitharaman said.

–IANS

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(Only the title and image of this report may have been reworked by Business Standard staff; the rest of the content is automatically generated from a syndicated feed.)

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