Cairn tax blow: India must walk the talk on ease of doing business
India must necessarily consider a policy change that aligns with the promises made by this government and repeal the retroactivity in the application of the indirect transfer provisions Ritesh Kumar December 24, 2020 / 08:27 PM IST
The retrospective tax law enacted in 2012 is coming back to haunt India. On Wednesday, an international arbitration tribunal ruled that India’s tax demand from Cairn Energy Plc is in breach of ‘fair and equitable treatment’ guaranteed under the bilateral investment treaty. The court also ordered New Delhi to compensate Cairn for the total harm suffered and pay $1.2 billion, that is roughly Rs 8,800 crore, in damages.
Retrospective tax: After Vodafone, India loses Cairn arbitration case
The international tribunal also ruled that India’s demand of $1.2 billion in retrospective tax was “in breach of the guarantee of fair and equitable treatment”. December 24, 2020 3:50:01 am
The Cairn India Ltd. logo is displayed on a sign outside the venue of the company s annual general meeting in Mumbai, India, on Thursday, Aug. 18, 2011. (Photographer: Adeel Halim/Bloomberg)
Cairn Energy Plc won a major relief on Wednesday as the Permanent Court of Arbitration at The Hague ruled that the Indian government’s retrospective tax demand against the global oil and gas major was “inconsistent” with the UK-India bilateral treaty.
Cairn wins arbitration ruling against India in tax dispute: What is this case?
Like Vodafone, this dispute between the Indian government and Cairn also relates to retrospective taxation. Written by Aashish Aryan , Edited by Explained Desk | New Delhi | Updated: December 29, 2020 9:09:19 am
Worker cycles by machinery at Cairn India, Oil and Gas exploration plant at Barmer in Rajasthan. (Photo via Bloomberg)
The Permanent Court of Arbitration at The Hague has ruled that the Indian government
was wrong in applying retrospective tax on Cairn. In its ruling, the international arbitration court said that Indian government must pay roughly Rs 8,000 crore in damages to Cairn.
Law firm allowed credit in India, for taxes withheld in Japan
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Law firm allowed credit in India, for taxes withheld in Japan
Lubna Kably / TNN / Dec 23, 2020, 11:56 IST
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(Representative image)
MUMBAI: The Income-tax Appellate Tribunal (ITAT), Mumbai bench recently dealt with the issue of allowability of tax credit in India for taxes withheld in Japan.
Clients in Japan, of the well-known law firm Amarchand & Mangaldas & Suresh A Shroff & Co had withheld tax at source at 10% against the fees payable. The issue was whether the partnership firm can claim a foreign tax credit (FTC) in India. The ITAT passed an order in favour of the law firm.
Updated Dec 22, 2020 | 06:21 IST
The scheme was introduced after the success of the “Sabka Vishwas Scheme,” which was introduced to reduce indirect tax disputes. The scheme provides a waiver from interest and penalty. Have a weak case? Here s why you should opt for Vivad se Vishwas scheme
New Delhi: Union Finance Minister Nirmala Sitharaman announced the introduction of the Vivad Se Vishwas scheme during her budget speech with a view to “provide for the resolution of pending tax disputes.” The scheme was introduced after the success of the “Sabka Vishwas Scheme,” which was introduced to reduce indirect tax disputes. The scheme provides a waiver from interest and penalty.