Government asks I-T department to apply Vodafone principle on similar Transfer Pricing cases

MUMBAI: In what will be widely perceived as a sentiment booster for investors, the government has asked the I-T department to apply the principle behind a tax ruling involving Vodafone Group to all similar transfer pricing cases, an official letter seen by Reuters showed.

Reacting to the news, Dinesh Kanabar of KPMG India told ET Now, “Companies had held back investment on uncertainty in transfer pricing. Orders passed earlier will be rectified post government’s decision.” “I am happy that the government has proactively moved on transfer pricing cases,” Kanabar added.