Moving quickly towards ending a retrospective tax dispute with a firm that gave India its largest oilfield, the government has accepted Cairn Energy PLC’s undertakings which would allow for the refund of taxes, sources said.
The company had earlier this month given required undertakings indemnifying the Indian government against future claims as well as agreeing to drop any legal proceedings anywhere in the world.
The government has now accepted this and issued Cairn a ‘Form-II’, committing to refund the tax collected to enforce the retrospective tax demand, two sources in direct knowledge of the development said.
Following the issuance of Form-II, Cairn will now start withdrawing all cases in international courts.
Once this is complete, the company will be issued a Rs. 7,900 crore refund, they said, adding the withdrawal of cases may take up to three-four weeks.
A senior finance ministry official confirmed the government accepting the company’s undertakings.
Cairn will now start withdrawing all cases in international courts
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