The Federation of Andhra Pradesh Chambers of Commerce & Industry in association with International Fiscal Association - Hyderabad Sub Chapter & Institute of Company Secretaries of India - Hyderabad Chapter organized a Panel Discussion on Supreme Court Judgment on “VODAFONE VERDICT” on 2nd March 2012 at Surana Udyog Auditorium, Red Hills, Hyderabad.
Mr. V S Raju, President, FAPCCI, CS Shujath Bin Ali, Chairman, ICSI, Hyderabad Chapter , CA Neelesh V. Vithalani, IFA, Hyderabad Sub Chapter, Mr. P.V.V.S. Prasad, Chartered Accountant, Partner, Prasad & Prasad Co, Mr. T.S. Ajai, Chartered Accountant, Partner, T.S. Ajai & Co, Mr. Jayesh Sanghvi, Chartered Accountant, Partner, Ernst & Young, Mr. Sampath Raghunathan, Chartered Accountant, Mr. Srinivas Ayyadevara, CA, Vice President, FAPCCI, Mr. Abhay Kumar Jain, Chairman, Direct Taxes Committee, FAPCCI are the key speakers at the occasion.
The Tax experts and industrialists have welcomed the Supreme Courte judgment on the landmark verdict on India’s most debated tax dispute of VODAFONE. It will enhance the trust of international investors in Indian judicial system and it will send a clear message to international community about the supremacy of the rule of Law in India. And it will send positive signal to foreign investors and will beneficial for the Foreign Direct Investments (FDI) in long run. We also foresee income tax department will Legislate some form of GAAR. The panelists have come to conclusion that due to the lack of clarity and absence of appropriate provisions in the statute and treaty has led to unnecessary litigation in this case. It is the duty of the court to ascertain the legal nature of the transaction and while doing so it has to look at the entire transaction as a whole and not to adapt a dissecting approach.
Mr. Abhay Kumar Jain is predicting that tax administration will bring GAAR provisions and other anti tax avoidance measures to curb the loopholes available in existing income tax act in coming budget. And many provisions contained in propose DTC will be incorporated in the forthcoming Union Budget.