‘Cairn In­dia has In­dem­nity from For­mer Promoter on 20k-cr Tax’

The Economic Times - - Companies - Press Trust of In­dia

Lon­don: Cairn In­dia has full in­dem­nity from its for­mer promoter Cairn Energy of UK against levy of any tax for past deeds, in­clud­ing the twoyear old .₹ 20,495 crore ret­ro­spec­tive tax de­mand, its new owner Anil Agar­wal has said.

Cairn In­dia was in April 2014 slapped with a tax de­mand of .₹ 20,495 crore for fail­ing to deduct with­hold­ing tax on al­leged cap­i­tal gains made by its erst­while par­ent com­pany, Cairn Energy in 2006-07 when it re­or­gan­ised In­dia busi­ness. Agar­wal’s Vedanta Group ac­quired Cairn In­dia in 2011 and in the sale pur­chase agree­ment Cairn Energy has in­dem­ni­fied it from any tax li­a­bil­ity for past years, he told PTI in an in­ter­view here.

“Our tax de­mand is purely on the ba­sis of tax de­mand on the prin­ci­pal com­pany, that is Cairn Energy. We have ab­so­lutely noth­ing to do with ret­ro­spec­tive tax. It is be­tween them (Cairn Energy and In­come Tax De­part­ment),” Agar­wal said.

The tax no­tice on Cairn In­dia came three months af­ter In­come Tax De­part­ment us­ing ret­ro­spec­tive tax legislation slapped .₹ 10,247 crore tax no­tice on Cairn Energy in Jan­uary 2014.

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