Independent trade associations, representing more than 2.50 lakh companies engaged in a wide spectrum of industries throughout the world, have expressed deep concerns about many of the tax provisions proposed in the Finance Bill 2012.
In a letter to the Prime Minister and Finance Minister, the associations said: “If [provisions of the Finance Bill 2012 are] enacted, they would significantly alter the Indian taxation of the member companies, with retroactive effect extending back for as much as half a century, and reverse many decided cases.
Some of our member companies had already begun reevaluating their investments in India due to increasing levels of controversy and uncertainty regarding taxation in recent years.”
The letter goes on to say that the sudden and unprecedented move in the Bill “has undermined confidence in the policies of the Government of India toward foreign investment and taxation and has called into question the very rule of law, due process, and fair treatment in India.”