What is retrospective tax with example?

Retrospective tax For eg: Levy of tax on indirect transfers by Finance Act 2012 retrospectively from 1961; Introduction of Section 14A for disallowance of expenditure related to exempt income in the year 2001 with retrospective effect from April 1962.

What are retrospective taxes?

A retrospective tax is one that is charged for transactions in the long past. It can be a new or additional charge on transactions done in the past. Hence, retrospective tax simply means imposing an additional charge of tax via an amendment from a specified date in the past.

What is retrospective taxation Quora?

Retrospective tax is the tax that is to take effect, in point of time, before it was passed. In other words, certain amendment or provision in tax law which are made applicable from past date are called effective retrospectively and accordingly, takes in its ambit the past transactions / proceedings. 1.3K views.

Who implemented retrospective tax in India?

Retrospective tax regime in India The trigger to introduce the retrospective taxation in India was the Vodafone-Hutchison deal in 2007. In May 2007, Vodafone had bought a 67 percent stake in Hutchison. The government raised a tax demand of Rs 7,990 crore in capital gains and withholding tax.

What is Vodafone retro case?

Vodafone Group has filed an application with the government to settle its ₹20,000-crore retrospective tax dispute. In Vodafone’s case, the government will refund ₹44.7 crore since the company had not paid any tax on the demand raised by tax authorities, which comes to ₹22,100 crore in taxes, interest and penalties.

What is the Vodafone tax case all about?

In the case of Vodafone, the tax department raised a tax demand of Rs 11,218 crore over its Hutch-Essar deal in the Cayman Islands. It was different as taxes were raised by validating an October 2010 order of the I-T department.

Is Vodafone an Indian company?

Vodafone India (formerly Vodafone Essar Ltd, Huchison Essar Ltd) was the Indian subsidiary of UK-based Vodafone Group plc and was a provider of telecommunications services in India with its operational head office in Mumbai.