EXCLUSIVE: New legislation will improve protection for foreign investors in India by offering relief from possible policy changes but will uphold the state’s right to tax them by AdityaKalra AditiShahsays
) have collectively faced billions of dollars in tax claims from India’s government in recent years, leading to arbitration cases and protracted legal battles in courts.
Nevertheless, the document defended the exclusion, saying “the power to tax is an integral part of the state’s police powers even recognized in international law”.Two sources familiar with deliberations on the law said it could still undergo several changes before it is finalised. The bill is likely to be presented for passage in the upcoming parliament session that starts Jan. 31, they said.
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