look news india
Ahmedabad: The government is looking for ways to resolve tax disputes with major companies like Infosys Ltd and major foreign airlines. According to reports, the Indian government is ready to reach a settlement without hurting the sentiments of investors. According to sources, officials are considering options for contracts with Infosys and other companies.
India has a long history of tax disputes with domestic and foreign companies such as Cairn India, Vodafone Group. Last month, IT giant Infosys received Rs. 32,403 crore ($3.9 billion) back-dated tax notices for the year 2017. Authorities believe that taxes have not been paid on expenses incurred in the company's overseas offices. Apart from this, tax notices have also been sent to 10 foreign airlines including British Airways. It is estimated that the Anwar government has issued GST tax notices worth more than Rs 1 lakh crore to local and foreign companies for the years 2018 to 2022.
Analysts have warned that the tax notice, issued without any prior notice, could hurt India's efforts to attract investment from China and reinforce the perception that it is still difficult to do business in India.
Critics say such cases can vitiate the business environment and discourage foreign investors. Such notices serve to shake confidence, especially at a time when India needs foreign investment to boost its economy.
According to a media report, these notices will be discussed along with other issues in the GST Council meeting of the Union and State Finance Ministers to be held on September 9. The government is working on finding a solution to such issues so that the ease of doing business remains in the long run.
The government aims to resolve these disputes amicably and reduce the pendency of legal cases. Finance Minister Nirmala Sitharaman on Wednesday urged tax officials to use their powers judiciously and resort to law as a last resort to encourage voluntary tax filing.
