The Central Board of Direct Taxes (CBDT) has formally written to British telecom major Vodafone, agreeing to enter into a non-binding conciliation to resolve the long-standing tax dispute.
“The Income-Tax Department has written to Vodafone, agreeing to enter into a non-binding conciliation to resolve the long-standing tax dispute” said a senior CBDT official. Both sides will soon appoint representatives to carry out the negotiations, he said further. Seeking to resolve the long-standing tax dispute with Vodafone, the Cabinet earlier this month had approved a proposal for non-binding conciliation with the British telecom major, the outcome of which will ultimately be vetted by Parliament.
“We (have) accepted the offer of Vodafone to enter into a non-binding conciliation. The outcome of the non-binding conciliation will be brought back to the Cabinet. “If both sides (Vodafone and the government) agree on the outcome of the non-binding conciliation then the matter will be taken to Parliament by an amendment to the Income Tax Act,” Finance Minister P Chidambaram had said.
The Minister had added that no timeframe has been set for conclusion of the conciliation proceeding.