Max Financial Services Ltd (MFSL) on Wednesday said it has settled a tax dispute involvingover Rs 123 crore under the government's 'Direct Tax Vivad Se Vishwas' scheme.
The company claimed that it has become the first largecompany in the private sectorto settle a tax dispute under the scheme.
MFSL settled a long-pending income tax case under the dispute resolution scheme 'Direct Tax Vivad Se Vishwas, 2020,' recently launched by the government, the company said in a release.
"MFS has paid Rs 123.78 crore for settling the litigation involving capital gains from the stake sale of its erstwhile telecom joint venture Hutchison Max Telecom Ltd," it said.
The settlement was finalized with the Jalandhar jurisdiction of I-T earlier this month and due taxes have been remitted, it added.
The government had announced the 'Vivad se Vishwas' scheme in the union budget for 2020-21. Under the scheme, taxpayers whose tax demands are locked in dispute in multiple forums can pay due taxes by June 30, 2020 and get a complete waiver of interest and penalty.
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"The payment also clears a tax dues contingent liability that has been reported on the company's books for the past two decades," it added.
MFSL is the holding company of India's fourth-largest life insurer Max Life.