Sources have indicated that the Cabinet will not withdraw the conciliation process and the company will be given some more time to agree to the terms of conciliation.
The finance ministry has sent back a response to Vodafone in the tax tussle case thereby kicking off official talks on the tax dispute. A meeting is expected shortly between the revenue secretary and Central Board of Direct Taxes (CBDT) chair person with Vodafone executives and the interest waiver is likely to be the clincher in the resolution.
The government is striking a defiant tone. Speaking to CNBC-TV18, Veerappa Moily, corporate affairs minister, said that the government is not compelled to respond to the notice issued by Vodafone on the ongoing tax tussle between the government and Vodafone.