India withdraws the infamous retrospective amendment

The Government of India has finally passed a bill to withdraw the retrospective nature of the Indirect Transfer tax amendment. This retrospective amendment to the Income Tax Act was introduced after the Hon’ble Supreme Court’s verdict in the case of Vodafone. It was held by Hon’ble Supreme Court that gains arising from indirect transfer of Indian assets in respect of transaction between Vodafone and Hutchison Essar are not taxable under the provisions of the Act.