Monday, March 10, 2008

The provisions of Section 201 of the Act cannot be extended to apply to a person who has not withheld taxes

Is the ‘assessee in default’ amendment aimed at Vodafone?

Does Vodafone have something to worry about in the latest Finance Bill? Seems so, according to tax experts, who cite the proposed amendment to Section 201 of the Income-Tax Act, 1961 about ‘assessee in default’.
Significantly, the planned tax change is to be retrospective, travelling backwards by more than five years.
“A noticeable trend which has been observed in the last few annual Budgets is the introduction of amendments to the I-T Act, most often with retrospective effect, with a view to overrule rightful technical arguments adopted by tax assessees, or certain legal precedents favouring the tax assessees,” observe N. C. Hegde and Surojit Ray, Partner and Deputy Manager, respectively, in Deloitte Haskins & Sells, Mumbai.

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