Govt notifies rules to settle Vodafone retrospective tax case

The government has notified a fresh set of rules to facilitate settlement of the retrospective tax dispute with British telecom giant Vodafone Plc.

The Central Board of Direct Taxes on October 13 notified ‘Relaxation of Validation (Section 119 of the Finance Act, 2012) Rules, 2021’, prescribing the forms and conditions for the declaration to be filed by the company for settling its case.

After enacting a law to scrap any tax demand levied on companies using the controversial 2012 amendment to the Income Tax Act, the government on October 2 notified rules for settling such cases.

The government has promised to refund any tax collected using such law but without any interest and subject to companies agreeing to withdraw all pending legal proceedings.