Friday, March 13, 2015

Cairn, Vodafone etc- The bumbling and fumbling tax authorities of India

The Income Tax department are like the Keystone Cops Now they are harassing the shareholders of Cairn India by slapping a demand on it for not deducting tax at source on the consideration paid to the existing shareholder by the incoming shareholder.
In Vodafone case also, the department did the same thing.
Here is a link to the Cairn story : 

Modi and Jaitley merely seem to be mouthing promises of not harassing people. If I read between the lines, it looks like the new owners of Cairn India have not fully met some demand of you-know-who.
Like in the Vodafone case, the Income Tax dept of India is the only body in the world which does not approach the seller who made the capital gain (In Vodafone case, it was Essar & Hutchison Whampoa) but rather wakes up after a few months or years to chase someone else. It clearly is a sign of a failed extortion attempt..

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