Retrospective Tax

Moody's Ratings has said the Supreme Court ruling on royalties and taxes will be credit negative for mining companies like Tata Steel, UltraTech Cement, and Vedanta Resources Ltd, as it will dent their cash flows and affect their profitability. 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 and mineral-bearing land from the Centre in a staggered period of 12 years. "The retrospective taxes are credit negative for companies with mining operations in India such as Tata Steel Ltd (Baa3 stable), UltraTech Cement Ltd (Baa3 stable), JSW Steel Ltd (Ba1 stable) and Vedanta Resources Ltd (Caa3 negative) because the instalment payments will dent their cash flows," Moody's Ratings said in a statement. "These companies will have to pay state taxes going forward that will hurt their profitability," it said. "While the companies' retrospective taxes could be significant, the effect o

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

British telecom giant Vodafone on Friday said it has filed an application with Indian authorities for settlement of their retrospective tax dispute. Vodafone further said it has "always been confident" that no tax is due on the company. The government in August enacted a law to end all retrospective taxation imposed on indirect transfer of Indian assets. The rules under the law seek to withdraw tax demands made using a 2012 retrospective legislation to tax the indirect transfer of Indian assets and also refund the amount paid in these cases without any interest. Asked if the company has filed an application with the Indian government to settle the retrospective tax dispute, a Vodafone spokesperson said, "We can confirm we have filed an application". The spokesperson added, "We have always been confident that no tax liability arose in respect of our acquisition of the Indian business, and this was borne out by the decisions of the Supreme Court of India and the International Court o

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 oil and gas explorer 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. Cairn Energy, which gave India its biggest onland oil discovery, had in 2011 sold the India unit, Cairn India to mining baron Anil Agarwal's Vedanta Group. The sale included the transfer of the Cairn brand name to Vedanta. But both the UK firms and Vedanta kept using the name - while Cairn Energy did not change its name all this while, the mining group continued with Cairn India Ltd till 2018 when the firm was merged with Mumbai-listed Vedanta Ltd. Since then, the oil and gas exploration and production operations of Vedanta Ltd are organised as Cairn Oil & Gas. In a statement, Cairn Energy PLC said it "plans to change its company name from Cairn Energy PLC to Capricorn Energy PLC, effective from December 31, 2021. The LSE stock ticker will remain as CNE". This, it said, ...

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