India to amend tax laws after resolving Vodafone dispute
New Delhi: The Indian government will introduce changes in the income tax laws once the dispute with Vodafone is resolved, Finance Minister P Chidambaram said on Saturday. "Amendments to the Income Tax Act is inevitable, that is absolutely necessary," Chidambaram told reporters adding that the government was waiting for a possible outcome of the negotiation on over a $2 billion Vodafone tax dispute.
Chidambaram said he would propose the changes in the Income Tax Act once the Vodafone dispute was resolved. The world's largest telecom service provider Vodafone is involved in a Rs.11,000 crore ($2.2 billion) tax dispute with Indian authorities related to $11 billion acquisition of mobile assets from Huitchison in 2007.
The finance minister emphasised that India was a "safe and attractive destination for investments." Chidambaram said he had visited major financial centres like Tokyo, Dubai and Hong Kong to attract overseas investments in India.