{"id":164784,"date":"2022-01-27T20:33:07","date_gmt":"2022-01-27T15:03:07","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=164784"},"modified":"2022-01-27T20:37:02","modified_gmt":"2022-01-27T15:07:02","slug":"taxing-drama-on-retroactive-tax-disputes","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/taxing-drama-on-retroactive-tax-disputes\/","title":{"rendered":"\u201cTaxing Drama-on Retroactive tax disputes\u201d"},"content":{"rendered":"\n

News<\/span><\/b>\u00a0<\/span><\/p>\n

Cairn energy, a British firm will be getting around 7,900 crore rupees from Indian government.\u00a0It\u00a0has\u00a0won an arbitration proceeding\u00a0against India\u00a0regarding\u00a0the retroactive tax dispute. \u00a0<\/span>\u00a0<\/span><\/p>\n

What was this dispute?<\/span><\/b>\u00a0<\/span><\/h5>\n

Government of India had introduced a retroactive tax in the year 2012. Accordingly, it\u00a0pursued proceeding against Vodafone and Cairn energy asking them for paying these taxes retroactively.<\/span>\u00a0<\/span><\/p>\n

More on the dispute\u00a0<\/span><\/b>here<\/span><\/b><\/a>\u00a0<\/span><\/p>\n

What was has been the result in two disputes?<\/span><\/b>\u00a0<\/span><\/h5>\n

C<\/span><\/b>airn and Vodafone initiated arbitration proceedings against Indian\u00a0tax authorities and won in late 2020. The Permanent Court of\u00a0Arbitration also directed Indian government to pay penal damages worth 1.2 billion dollar to Cairn energy.<\/span>\u00a0<\/span><\/p>\n

Government in return worked out a compromise with Cairn. Under which it will drop all legal proceeding seeking to enforce the arbitration award against India, forgo the damages and indemnify the Government against all future claims or liabilities.<\/span>\u00a0<\/span><\/p>\n

What is the way forward?<\/span><\/b>\u00a0<\/span><\/h5>\n

Government should now try to work swiftly to process their paperwork and preferably remit their dues before the financial year concludes. This is\u00a0especially\u00a0necessary to restore some of the damage caused to Brand India.<\/span>\u00a0<\/span><\/p>\n

India needs to demonstrate greater certainty and predictability across economic policy. This will bolster its credentials as an ideal investment destination.<\/span>\u00a0<\/span>\u00a0<\/span><\/p>\n

Source<\/span><\/b>– This post is based on the article \u201c<\/span>Taxing Drama-on Retroactive tax disputes<\/span><\/b>\u201d published in\u00a0<\/span>The Hindu<\/span><\/b>\u00a0on 27th Jan 2022.\u00a0<\/span>\u00a0\u00a0<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

News\u00a0 Cairn energy, a British firm will be getting around 7,900 crore rupees from Indian government.\u00a0It\u00a0has\u00a0won an arbitration proceeding\u00a0against India\u00a0regarding\u00a0the retroactive tax dispute. \u00a0\u00a0 What was this dispute?\u00a0 Government of India had introduced a retroactive tax in the year 2012. Accordingly, it\u00a0pursued proceeding against Vodafone and Cairn energy asking them for paying these taxes retroactively.\u00a0… Continue reading \u201cTaxing Drama-on Retroactive tax disputes\u201d<\/span><\/a><\/p>\n","protected":false},"author":10323,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10498],"class_list":["post-164784","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704786735},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/164784","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10323"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=164784"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/164784\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=164784"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=164784"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=164784"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}