In a strong message to the critics of the retrospective amendment to the tax laws, Finance Minister Pranab Mukherjee has asserted India is not a tax haven.

"India is not a no-tax country, India has a determined tax rate, but it is not a tax haven ... If you pay tax in your country of origin, you don't have to pay tax, if we have double taxation agreement with your country of origin.

"We are exactly explaining that position in respect of Vodafone case. It is not a vindictive attitude," Mukherjee said in the Lok Sabha in his reply to the discussion on the Budget on Tuesday.

He said the double taxation avoidance agreements (DTAAs) are meant for genuine investors who are required to pay in only one of the contracting countries.

Mukherjee said the tax laws are not arbitrary but transparent and determined. "We are not going to have tax haven. At the same time, we are not going to say that tax laws are arbitrary. Tax laws are transparent, it is firm and determined," he said.

He defended government's proposal to amend the Income Tax Act with retrospective effect in the wake of Supreme Court order in the Vodafone case but said there was no room for apprehension as cases beyond six years cannot be reopened.

"It does not mean all cases will be reopened from 1961 and 1962...where is the apprehension?", he said.

As per the IT Act, the government cannot reopen tax cases beyond six years, he said, adding the intent of legislature is that there should be no double taxation and also no outflow of revenue.

The proposed IT amendment aims at taxing overseas mergers and acquisition relating to domestic assets with retrospective effect. The proposed changes in the I-T Act evoked sharp reactions from industry which argued that the move will hurt foreign investment.