I don't find any reason why Vodafone should not be taxed for capital gains no matter where is deal is finalized but the true impact is in India so the Indian government must have right to tax. Many pseudo outsourcing companies based in Mauritius evade tax on account the treaty signed with Govt. of Mauritius which seeks to avoid double taxation and companies will have to pay taxes to domicile county.
I think it is high time our policy framers should devise more rational taxing policy to plug the existing loopholes in the current tax system or legislation.
Shashikant Nishant Sharma