Don’t go around taxing investors

There are many firsts attached to the Vodafone case in India. Not only do the circumstances of the case make it unique in the tax litigation sphere, the monetary stakes involved puts it in a league of its own. Since the inception of the current Income Tax Act in India—five decades ago—the transfer of shares of a non-resident company by a non-resident to another has hardly been taxed in India, even if the company had substantial investments in India.

Read Full Story>>