The Ministry of Finance has issued an important Press Release on the retrospective amendments in Finance Bill 2012. In particular it was stated that the retrospective changes proposed are “not substantive but clarificatory in nature” and only “reiterated the intent of the legislation“. It was also stated that “tax cases which have already been assessed and finalized up to April 1, 2012 cannot be reopened“. It was emphasized that “Indian tax laws are very clear that the companies making capital gains from the assets located in India will have to pay taxes either in the country of their origin or in India” and that “It is not a case of double taxation but ensuring that companies that are liable to pay tax must pay some tax“. On the issue of categorization of software sales as royalties, it was stated that that discussions had been held in the past between the tax authorities in USA and they had “agreed to disagree” on such characterization.