Agarwal’s Vedanta Resources Plc acquired Cairn India in 2011 and in the sale purchase agreement Cairn Energy has indemnified it from any tax liability for past years, he told a domestic news agency.
Cairn India Ltd has full indemnity from its former promoter Cairn Energy Plc against levy of any tax for past deeds, including the two-year-old Rs. 20,495 crore retrospective tax demand, Anil Agarwal has been quoted as saying.
Agarwal’s Vedanta Resources Plc acquired Cairn India in 2011 and in the sale purchase agreement Cairn Energy has indemnified it from any tax liability for past years, he told a domestic news agency.
Agarwal’s Vedanta Resources Plc acquired Cairn India in 2011 and in the sale purchase agreement Cairn Energy has indemnified it from any tax liability for past years, he told a domestic news agency.
“Our tax demand is purely on the basis of tax demand on the principal company, that is Cairn Energy. We have absolutely nothing to do with retrospective tax. It is between them (Cairn Energy and income tax department),” Agarwal has been quoted as saying.
“I have full indemnity from that company (Cairn Energy) on the tax demand,” Agarwal added.
In April 2014, Cairn India was slapped with a tax demand of INR 20,495 crore for failing to deduct withholding tax on alleged capital gains made by Cairn Energy in FY07 when it reorganised the India business.
The tax notice on Cairn India came 3 months after the income tax department (I-T Dept), using retrospective tax legislation slapped INR 10,247 crore tax notice on Cairn Energy.
In February this year, the IT-Dept issued a final assessment order, seeking over INR 29,000 crore in tax from Cairn Energy including INR 18,800 crore in interest
No comments:
Post a Comment