Featured Research
- Indian economy 2011 Overview: Challenges for the Global Economy Surfaced after Sovereign Debt Crisis.
- India's Annual Monetary Policy 2011.
From our "Chief Researcher"
Vodafone's acquisition of Hutchison Whampoa in 2007 dragged the company to the tax row and battles to avert to pay the whopping $3.5 billion in taxes and penalties. The Indian Constitution gives power to the Government of India to amend the tax law. Given the fact of the deal, Vodafone-Hutch deal was taxable. Vodafone is at fault of not deducting the tax at source, and the government is at fault by not interfering at the time deal was struck. Perhaps, if the Vodafone required to pay the taxes, owed to India's Tax Department, it could not make any significant impact on the country's investment prospect. Further, Indian government should work on to liberalize its tax reforms and make it more transparent, which matters to foreign investors.

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