The negotiations going on between the Govt. of India and Vodafone, the second biggest telecom company in India, on the tax arrears of Rs. 11,200 crore to be paid by the latter, seems to have been failed and the Government is
The conciliation had no moral justification. Because it is a foreign and influential company, the government was bending its knee, and coming out for conciliation. These MNCs, with the strong support from their governments, are trying to bend Indian rules to suit their requirement and maximise profit. While the conciliation was going on, the Vodafone put another demand that another tax case of Rs. 8,500 crore also be brought under this negotiation. That issue is pending in court and the government case is very strong. The government refused to agree to the proposal and stated that the negotiations on Rs.11,200 crore proposal will not continue.
In such a situation, Vodafone will have to pay about Rs. 20,000 crore including the interest etc.
We feel that these taxes which are due to the government should be strictly collected. There need not be any leniency towards the Corporate Tax evaders.