Retro tax framework: Companies to indemnify govt against any future claims

Indemnity bond to be furnished by the firm and other interested party

Cairn Energy, Vodafone and other companies looking to settle retrospective tax disputes will have to indemnify the Indian government against any future claims arising out of the said dispute.

This will be in addition to their own undertaking to withdraw any pending litigation or proceeding before any forum and assurance that they won’t pursue any further claims in the future.

The indemnity bond will have to be furnished by the company and any other interested party with the income-tax authority and it’s resolution panel, according to the Central Board of Direct Taxes (CBDT).

Under the new mechanism, companies can now