Chidambaram, Analjit meet, but not for Vodafone

Finance Minister P Chidambaram. Image courtesy PIB

Vodafone's negotiations with the Ministry of finance for the settlement of the tax case is stuck on the issue of Rs 3500 crore interest if the Government is willing to lift the penalty, provided that the telecom company taxes and the interest charged. The telco is, however, prepared to pay taxes as a penalty and interest have been lifted.

The Government can waive the penalty under the section 273A of the income tax law, according to a CNBC-TV18 report.

"Punishment is not due as the case before the Supreme Court" sources inducted into the case in Vodafone said.

Sources in the Government said that it is politically difficult to retro the retrospective amendment Amendment prospective and in paragraph 9 of the T Act will continue.

"The unintended consequences of section 9 will be treated according to the Commission report of Parthasarathi Shome," Government sources said.

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