Vodafone tax dispute may come up for Cabinet nod soon

The Vodafone tax dispute is all set to come up for Cabinet approval shortly. The finance ministry is working on a Cabinet note which is likely to contain terms of conciliations offered by Vodafone, reports CNBC-TV18's Aakansha Sethi.

Also read: India to seek parliament nod to change retrospective tax rules The finance ministry is waiting for the law ministries opinion on this matter after which it is likely to go to Cabinet in the next one or two weeks. It is learnt that the finance ministry is likely to give in the Cabinet note the terms on which Vodafone has offered conciliation and also the terms for which the finance ministry is willing to settle. The clinch is likely to be the wavier on the interest because the Central Board of Direct Taxes (CBDT) sources indicate that they are willing to agree on penalty wavier and are not willing on complete interest wavier. On the other hand, Vodafone wants not just an interest and penalty wavier but also a concession in the tax amount. One needs to see if the Cabinet gives a go ahead for this, whether the law ministry agrees to it and secondly, once the conciliation process does start, if Vodafone and the finance ministry happen to find common ground.