What is a Retrospective Tax?

In a major victory for mineral-rich states, the Supreme Court had on August 14 allowed them to seek dues from April 1, 2005 on royalty and tax on mineral rights

States would do well to exercise the discretion that the Supreme Court has given them to leaven the impact of a judgment that benefits them immensely

The applicants have requested for retrospective imposition of the anti-dumping duty

Setback for miners as they will have to pay levy from 2005

Industry experts say that the retrospective tax ruling will have a ripple effect on supply chain part of other industries as well

The Supreme Court specified that payment for tax demands, which can be retrospectively applied from April 2005, should be staggered in instalments over a 12-year period, beginning from April 1, 2026

Two prominent policymakers - finance secretary TV Somanathan and revenue secretary Tarun Bajaj - said on Monday that the larger industry had a big role to play in reducing tax disputes

However, it would help all persons concerned if the CBIC issues a clarification in this regard

Last month, Cairn said it has agreed to drop litigations to seize Indian properties in several countries as it has accepted India's offer to settle the tax dispute

Vedanta had challenged the demand for taxes at two forums -- Income Tax Appellate Tribunal and Delhi HC while its parent Vedanta Resources challenged the move before a Singapore arbitration tribunal

'We have always been confident that no tax liability arose in respect of our acquisition of the Indian business,' says Vodafone spokesperson

The government in August enacted a law to end all retrospective taxation imposed on indirect transfer of Indian assets

As many as 14 companies against whom retrospective tax demands were raised have approached the government to settle cases, Revenue Secretary Tarun Bajaj said.

Britain's Cairn Energy PLC will change its company name to Capricorn Energy PLC from mid-December, around the time its over USD 1 billion retrospective tax dispute will be nearing closure

This will enable company to get Rs 7,900 crore from govt

Cairn gives in writing to indemnify govt, withdraw cases to get Rs 7,900 cr tax refund

Vodafone Plc is required to give a declaration to the Income-Tax Department, withdrawing all legal proceedings against the government over the levy of retrospective taxes

After the notification of the rules, Vodafone will have 45 days to approach the government for a settlement.

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Any dispute subject to jurisdiction of Indian courts could be a prickly issue, say experts