WASHINGTON: US-India Strategic and Partnership Forum (USISPF) on Thursday applauded the Indian move to withdraw the retrospective law relating to tax on indirect transfers.
"Yesterday's Bill introduced by the Finance Ministry will only encourage more international investments into India and is a welcome relief for companies who have long invested in the country. The USISPF is proud to have worked on this issue for many years," Mukesh Aghi, president and CEO of the USISPF said.
"USISPF applauds India's move to withdraw the retrospective tax amendment relating to tax on indirect transfers. The 2012 decision of the UPA government to impose retrospective tax has been a black mark on India's reputation as a predictable investment destination," he said.
Prime Minister Narendra Modi inherited this bad legislation. "And today we are delighted to see that he has finally decided to nullify it," Aghi said in his statement.
Finance Minister Nirmala Sitharaman introduced The Taxation Laws (Amendment) Bill, 2021 in the Lok Sabha that seeks to withdraw tax demands made using a 2012 retrospective legislation to tax the indirect transfer of Indian assets.
The bill provides for the withdrawal of tax demand made on "indirect transfer of Indian assets if the transaction was undertaken before May 28, 2012 (i.e.the day the retrospective tax legislation came into being)".