STOCK MARKET BSE NSE

Cairn India Slapped with Rs 20,495 Crore Tax Demand

The company is latest to join a slew of multinational firms, including Vodafone Group Plc and Royal Dutch Shell Plc, to face tax demand owing to a retrospective tax law.

Published: 13th March 2015 11:06 AM  |   Last Updated: 13th March 2015 11:06 AM   |  A+A-

By PTI

NEW DELHI: Income Tax Department has slapped a Rs 20,495 crore tax demand on Cairn India for failing to deduct withholding tax on alleged capital gains made by its erstwhile promoter, Cairn Energy Plc.

Cairn India said it does not agree with the tax demand and will pursue all possible options to protect its interest.

Earlier this week, the I-T Department had slapped a Rs 10,247 crore tax demand on Cairn Energy Plc for an alleged Rs 24,500 crore worth capital gains it made in 2006 while transferring all its India assets to a new company, Cairn India, and getting it listed on the stock exchanges.

"Cairn India Ltd has received an order from the Income Tax Department today for an alleged failure to deduct withholding tax on alleged capital gains arising during 2006-07 in the hands of Cairn UK Holdings Limited (CUHL), our erstwhile parent company, a subsidiary of Cairn Energy Plc," the company said in a regulatory filing.

This, it said, was in respect of the transaction of CUHL transferring the shares of Cairn India Holdings Ltd (CIHL) to Cairn India Limited as part of internal group reorganisation in 2006-07 to facilitate the IPO of Cairn India Ltd.

"A demand of approx Rs 20,495 crore (comprising tax of approx Rs 10,248 crore and interest of approx Rs 10,247 crore) is alleged to be payable. Cairn India does not agree with this alleged demand and will pursue all possible options to protect its interest," the company said.

Cairn India said it has always been fully compliant with all Indian income tax laws. "Income tax assessments, including transfer pricing assessment were duly completed for FY 2006-07, earlier," it said.

The company is latest to join a slew of multinational firms, including Vodafone Group Plc and Royal Dutch Shell Plc, to face tax demand owing to a retrospective tax law.

More from Business.

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

IPL_2020
flipboard facebook twitter whatsapp