The retrospective tax measure introduced this year was widely seen as targeting Vodafone, after the government lost a legal battle to claim about USD 2 billion from the company related to its 2007 acquisition of Indian mobile phone assets.
The draft report, published on Tuesday, also said the government should not levy any penalty interest in cases where tax demands have been raised following the amendment of tax rules retrospectively in March.
The panel will receive public feedback on its recommendations before publishing a final report which will influence the government's decision on taxing Vodafone and other similar deals.
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India should not tax assets retrospectively: Shome panel
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