GET Stock QuotesNews18 APP
News18 English
cricketnext
»
1-min read

I-T Dept Moves to Recover Rs 10,000 cr Retrospective Tax from Cairn Energy

This follows an international arbitration panel last week deciding not to entertain a plea by Cairn Energy seeking injunction against the coercive action to recover the tax

News18.com

Updated:June 19, 2017, 12:39 PM IST
facebookTwittergoogleskypewhatsapp
I-T Dept Moves to Recover Rs 10,000 cr Retrospective Tax from Cairn Energy
A security guard stands in front of a sign featuring the Cairn India Ltd logo outside the venue of the company's annual general meeting in Mumbai, India. (Getty Images)
New Delhi: A coercive action order against British oil firm, Cairn Energy Plc has been passed by the Income Tax Department, in order to recover Rs 10,247 crore of retrospective tax. The firm had lost a challenge on the move in front of an international arbitration panel.

The department ordered taking away USD 104 million dividend due to it from its remaining stake in the erstwhile subsidiary Cairn India (now called Vedanta Ltd) and another Rs 1,500 crore of tax refund due to it, a source told PTI.

This follows an international arbitration panel last week deciding not to entertain a plea by Cairn Energy seeking injunction against the coercive action to recover the tax.

The source said the tax department will now move to take over the 9.8% shareholding Cairn Energy had in Cairn India.

In an emailed statement, Cairn Energy confirmed the tax department's move.

"On June 16, 2017 the Indian Income Tax Department (IITD) issued an order to Vedanta India Ltd (VIL) directing it to pay over any sums due to Cairn. Sums due to Cairn from VIL now total USD 104 million, including historical dividends of USD 53 million and a further dividend of USD 51 million after the merger of CIL and VIL," it said.

The company said however that it will continue with the international arbitration proceedings against the retrospective tax demand.

"Cairn is seeking full restitution for (UK-India Bilateral Investment Treaty) Treaty breaches resulting from the expropriation of its investments in India in 2014, the attempts to enforce retrospective tax measures and the failure to treat the Company and its investments fairly and equitably," it said.

The company said it has a high level of confidence in its case under the Treaty and, in addition to resolution of the retrospective tax dispute, its claim seeks damages equal to the value of the Group's residual shareholding in Cairn India at the time it was attached (approximately USD 1 billion).

(With inputs from PTI)
Read full article
Next Story
facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Axis Bank 455.20 +5.25 +1.17
Bharti Airtel 499.95 +2.60 +0.52
Reliance 938.65 -1.10 -0.12
Dewan Housing 601.50 +18.55 +3.18
Zee Entertain 515.25 +23.60 +4.80
Company Price Change %Gain
Dr Lal PathLab 740.00 -13.85 -1.84
GNFC 542.10 +28.00 +5.45
HDFC 1,722.50 +1.60 +0.09
Larsen 1,129.80 -5.00 -0.44
Delta Corp 247.00 +10.70 +4.53
Top Gainers
Company Price Change %Gain
Zee Entertain 515.25 +23.60 +4.80
SBI 252.95 +7.00 +2.85
NTPC 181.60 +4.65 +2.63
ONGC 176.20 +4.50 +2.62
UPL 794.85 +16.50 +2.12
Company Price Change %Gain
SBI 253.65 +7.90 +3.21
NTPC 181.45 +4.80 +2.72
ONGC 176.40 +4.80 +2.80
HUL 1,265.00 +16.35 +1.31
ICICI Bank 265.90 +3.35 +1.28
Top Losers
Company Price Change %Gain
IndusInd Bank 1,668.05 -27.45 -1.62
Bosch 20,990.00 -292.55 -1.37
Tata Motors 417.10 -5.65 -1.34
HCL Tech 925.85 -11.40 -1.22
Tech Mahindra 458.40 -4.70 -1.01
Company Price Change %Gain
Tata Motors (D) 231.40 -3.40 -1.45
Tata Motors 417.00 -5.30 -1.26
Infosys 930.50 -9.15 -0.97
M&M 1,353.50 -13.55 -0.99
Sun Pharma 537.10 -3.15 -0.58

Live TV