Mumbai, March 13 (IANS) A day after mining group Vedanta Resources-controlled Cairn India said it has not received any notice about the retrospective $1.6 billion income tax demand on Britain-based Cairn Energy, it has got a $3.26 billion withholding tax demand for an eight-year-old transaction involving its former parent company.
"We would like to inform you that Cairn India Limited has received an order from the Income Tax Department today (Friday) for an alleged failure to deduct withholding tax on alleged capital gains arising during 2006-07 in the hands of Cairn UK Holdings Limited (CUHL), our erstwhile parent company, a subsidiary of Cairn Energy Plc," Cairn India said in a filing to the Bombay Stock Exchange.
"A demand of INR 20,495 Crore (comprising tax of approximately Rs.10,248 crore and interest of approximately Rs.10,247 crore) is alleged to be payable. Cairn India Ltd does not agree with this alleged demand and will pursue all possible options to protect its interest," the statement added.
"As was communicated yesterday (Thursday), from the media reports we understand that tax demand has also been made by the Income Tax department on Cairn UK Holdings Limited (CUHL) on this matter," Cairn India said.
Cairn India on Thursday clarified that CUHL was no longer part of its company.
Going contrary to Jaitley's promise that India will not levy any tax with retrospective effect, the Income Tax department on Wednesday imposed a $1.6 billion (Rs.10,247 crore) tax demand on Cairn Energy UK.
The demand relates to an alleged Rs.24,500 crore capital gains it made in 2006 when it transferred all its India assets to a new company, Cairn India, which got listed on the stock exchanges.
British Foreign Minister Philip Hammond, who is in India on an official visit, raised the Cairn tax issue with union Finance Minister Arun Jaitley during their meeting on Thursday.
The visiting minister told reporters here that Jaitley told him that the tax case involving Cairn has to be resolved through the courts as the process has already started.
"It did come up during my meeting with Jaitley. He explained that this particular tax demand is being sent out pursuant to a notice that was issued by the previous government," Hammond said.
Invoking the UK-India Investment Treaty, Cairn Energy said on Wednesday it will contest the Indian tax demand under the terms of the pact signed by both countries.
"Cairn continues to be restricted by the Indian Income Tax department from selling its 10 percent shareholding in CIL, currently valued at approximately $700 million. In addition, Cairn will seek restitution of losses resulting from the attachment of its CIL stake since 2014," it said.
The British PM said - I suffered apartheid: Sunak said - I will not let the same discrimination happen to anyone
British Prime Minister Rishi Sunak has broken his silence on the allegations of apartheid in Buckingham Palace. Although he did not mention it directly. Sunak said that we should raise our voices
Timeline of coal block allocation case
A special court here on Wednesday summoned former prime minister Manmohan Singh, industrialist Kumar Mangalam Birla and former coal secretary P.C. Parakh and others in a coal block allocation case.
Shahbaz Sharif started pleading for an attack on Noor Khan and a ceasefire, what was Pakistan afraid of?
After the declaration of a ceasefire between India and Pakistan, the situation in both countries has become normal. Last night, there was peace in Jammu and Kashmir and other areas along the
Typhoon Muifa: Port stalled in East China, schools also ordered to be closed; What is the reason after all?
Authorities in China's eastern province of Zhejiang have ordered ships to return to port. It has also asked schools to close and tourists to be evacuated from nearby islands as one of the most
Extreme heat: Mercury reaches 46.9 degrees Celsius in Agra, and the danger of heat wave increases; the Health department issued an alert
The maximum temperature of Agra reached 46.9 degrees Celsius on Friday. The risk of sunstroke or heat stroke has increased due to strong sunlight and hot wind. In such a situation, the
Wreckage of China's rocket fell on the earth: There was a bright light in the sky, people said on social media - it is like a meteorite rain
China's Long March 5B rocket hits Earth. The rocket burned up as soon as it entered the Earth's atmosphere. But on the intervening night of July 30-31, some fragments of the rocket fell on the earth.
2 lac active cases were reduced in 27 days, the pace of new cases also decreased by about 3% in 3 weeks; 73.05 lakh cases so far
On Wednesday, 14 thousand 504 active cases were reduced in the country. It has decreased by two lakhs in the last 27 days. On 17 September, they were at a peak of 10.17 lakhs and on 14 October they
CBSE instructions: If you miss both the term exams, you will not be able to give the compartment exam, know the rules
CBSE has released the guidelines regarding compartment exam eligibility and results for the students appearing in the term-based board examinations of classes 10th and 12th. Under this, CBSE has told
Modi's modernity vs saffron orthodoxy (Comment)
Historian Ayesha Jalal has writen in her latest book, "The Struggle for Pakistan", that "at the root of Pakistan's national identity crisis has been the unresolved debate on how to square the
WB Madhyamik and HS Exam 2021: West Bengal 10th and 12th board exams canceled, Chief Minister announced
WB Madhyamik and HS Exam 2021: The Government of West Bengal has canceled this year's board examinations of Secondary and Higher Secondary classes. Chief Minister Mamata Banerjee announced the
