New Delhi: Minister of Finance Nirmala Sitharaman on Monday said the rules that would lead to the exclusion of retrospective tax demands made in companies such as Cairn Energy PLC and Vodafone PLC will be immediately framed.
Parliament earlier this month issued a bill for the tax rule memo that gave the power of the tax department to go 50 years back and slapped the increase in levy capital anywhere ownership had changed hands abroad but business assets were in India.
2012 Legislation was used to pick up the cumulative RS 1.10 lakh crore tax on 17 entities, including vodafone giant Telecommunications British.
This bill provides the government to restore retro taxes to the company as long as all legal challenges are withdrawn.
Now the rules for the same thing must be framed, Sitharaman tells reporters here.
“Rules must be framed …
the rules will soon be famous.” The government must return it around RS 8,100 Crore that has been collected using retro tax laws.
Most of this – RS 7,900 Crore is with Cairn energy only.
While in other cases, it did not take punishment steps to restore tax demand, the Cairn sales tax department was close to 10 percent of the share ownership in Indian subsidiaries and also confiscated its dividends with a total of 1,140 crore rs and stopped RS tax refunds 1,590 crore.
Cairn challenges tax demand before the International Arbitration Court, which in December last year canceled the same thing and ordered the government to return the money collected.
Vodafone has also won an arbitration award that is profitable for RS 22,100 CRORE CRORE retribution.
In both cases, the government appealed against the award – in Singapore court in the case of Vodafone and in the Hague in the Cairn case.
Singapore is a vodafone arbitration seat and the same haag in the case of Cairn.
Asked whether the government would withdraw a challenge to the award after the passing of the law, Sitharaman said, “I will follow the laws that are passed in parliament.” “I will follow the legislative features.
There’s no more,” he said without describing.
The Minister of Finance said his ministry official was discussing with Cairn, Vodafone regarding the closure of retro tax cases, refunds and completion.
“There is no discussion with me (it has happened) so far,” he said.
The government’s refusal to honor the arbitration award has caused Cairn to take action to recover the money through confiscation of Indian assets abroad.
In May, it took India Air Carrier Flag Ltd to the US court and last month received a French court order to win the Indian-owned real estate in Paris.
Cairn must attract those challenges to get a refund.
Some of the 17 companies that face retrospective tax requests have transferred courts and they must attract those challenges for cases to be closed and resolved.
Nirmala Sitharaman said the rules about retro tax were immediately framed
