Telecom Lead India: Rajan S. Mathews, director general,
Cellular Operators Association of India (COAI), said it is not appropriate for
government to override judicial ruling in the Vodafone tax case.
COAI does not support the decision of the Indian
government to retroactively clarify the tax laws in order to make the Vodafone
transaction now taxable in India.
COAI said it does not believe that it is appropriate for
the government to seek to override a judicial ruling (especially by the Hon’ble
Supreme Court ruling) through a retrospective change to the tax laws.
The GSM industry association believes that as a general
principle, the legislature ought to provide for continuity, consistency and
predictability in matters of legislation and law. This would mean that
investors and taxpayers ought to be able to rely on the law in effect when the
business transaction took place else the interests of investors will not be
safeguarded thus leading to an inherent lack of trust in Indian policies by the
investors.
According to COAI, India, especially the mobile
communications industry, continues to be an attractive investment destination
for both foreign and domestic investors and that the Indian system, comprising
the Government, the Regulator and a strong and independent judiciary, will
provide adequate checks and balances to ensure that the legitimate interests of
investors are fully safeguarded.
