India offers Cairn Energy $1billion refund
The lower house of parliament on Friday approved a draft law introduced the previous day, canceling a 2012 policy that enabled New Delhi to tax some foreign investments retrospectively.
British explorer Cairn Energy Plc has won an arbitration against Indian over government’s retrospective tax demand of more than Rs 10,247 crore, reports said on Wednesday.
This is the second blow to the government in three months. The Permanent Court of Arbitration at The Hague in September ruled against India levying retrospective taxes on Vodafone Group.
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Sources said an international arbitration tribunal ruled that India’s tax claim of Rs 10,247 crore past taxes over a 2006-07 internal reorganisation of Cairn’s India business was not a valid demand, sources said.
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The tribunal has also asked India to pay the funds withheld along with the interest to the Scottish oil explorer for seizing dividend, tax refund and sale of shares to partly recover the dues.
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