April 21st, 2012
in Op Ed
Written by Sanjeev Kulkarni
Econintersect: If you think that 'Back to The Future' is only possible in Spielberg comic science fiction films you might change your mind. The Indian government has made this possible in real life, debunking Einstein's Theory of Relativity.
Follow up:Vodafone had successfully won the $ 2 billion tax case in the Indian Supreme Court. In May 2007, Vodafone bought Hutchison Telecommunications International Ltd’s 66.98% stake in Indian telecom company Hutch Essar Ltd for $11.2 billion. Hutchison controlled its Indian telecom subsidiary through a Cayman Island company called CGP. CGP’s shares were sold to Vodafone, which consequently became majority owner of the Indian telecom firm.
Baker & McKenzie, writing on behalf of the Software Coalition group, which includes Microsoft, Oracle and Adobe, warned that if the tax changes are implemented, software companies could reconsider the amount they are willing to invest in India.
"To impose new rules with retroactive effect to 1976 under the guise that they are clarifications violates fundamental notions of fairness," the law firm's partner, Gary D Sprague, wrote in an April 10 letter also marked to Finance Minister Pranab Mukherjee, Law Minister Salman Khurshid and Commerce Minister Anand Sharma.
The Economic Times says their sources have estimated that the tax revenues resulting could be “staggering,” running into billions of dollars.
- Vodafone Hits Back At India Over Retroactive Tax: The Wall Street Journal, 17 March 2012
- Budget 2012 proposes law that could overturn Supreme Court ruling in Vodafone case: The Economic Times, 17 April 2012
- Top software MNCs lobby against software tax changes in the Budget; warn of cut in investments The Economic Times, 19 April 2012
About the Author
Sanjeev Kulkarni is an entrepreneur based in Pune, India. He worked for large organizations in board level position before venturing on his own. He is currently involved as an investor in health care software company and as an investor, mentor in an automation company. Very widely traveled, he has experience of working in different geographical areas with people of varying nationalities. He did his BS from Indian Institute of Technology, Delhi.