Cairn tax dispute: IT dept orders recovery of Rs 10K crore

In Cairn Dispute Tax Department Orders Recovery Of 10,000 Crores Report

In Cairn Dispute Tax Department Orders Recovery Of 10,000 Crores Report

Indian company Vedanta has been told to pay United Kingdom company Cairn Energy dividends it is owed from a residual shareholding in its former subsidiary.

Cairn Energy had approached the worldwide panel shortly after the Income Tax Appellate Tribunal (ITAT) turned down its plea in March seeking injunction against coercive action to recover the tax. The I-T department will now proceed to take over the 9.8% shareholding Cairn Energy had in Cairn India.

In a statement to the London Stock Exchange, Cairn said that an global arbitration tribunal had declared that $53m in dividends due to Cairn from its previous Indian subsidiary would be released.

Kiwis back to challenge U.S. in America's Cup
They gained control from the outset and employed superior boat speed to simply sail clear of the hapless Americans. Team Oracle USA knew this was a major work-on for over a month but they have not (yet) been able to close the gap.

However, the sale might not happen immediately as the tax department will wait for the best price, the source said, adding that the shares can be sold to LIC or Vedanta whosoever quotes the best price.

Income Tax department holds Cairn Energy liable to pay taxes to the tune of Rs 10,247 crore on alleged capital gain the British firm made when it transferred its India assets to a newly created company Cairn India in 2006.

A $1.6bn tax demand was then issued against Cairn in 2015, which was linked to rules enabling retrospective tax investigations to be undertaken following tax wrangles with Vodafone. This notice followed Cairn Energy losing an appeal in the tax tribunal ITAT against the levy.

Co-operative Bank in 'advanced' talks over rescue package
Meanwhile, the bank said that as well as exploring potential recapitalisation it was also proceeding with its sale process. A further update, will be made "when appropriate", according to the Co-op.

Cairn Energy PLC on Monday said its claim under the UK-India Bilateral Investment Treaty in an ongoing tax dispute with the government of India is progressing.

According to Cairn, the Indian Income Tax Department has issued an order to Vedanta to pay sums due to the Edinburgh-based company.

Cairn said it was now due a total of $104m from Vedanta, including historical dividends of $53m and a further dividend of US$51m after the merger of CIL and VIL, with release of the dividend payment confirmed via an global arbitration tribunal in March.

Eoin Morgan admits to England regrets after dismal Champions Trophy exit
Pakistan had collapsed to 162 for seven chasing 237 against Sri Lanka but, two days on, there was no repeat of that batting slump. The first & second wicket partnership scored a worthy 118 runs when Fakhar Zaman was dismissed for 57 runs.

Recommended News

  • Israel goodwill Ramadan efforts cut after Palestinian attack

    Israel goodwill Ramadan efforts cut after Palestinian attack

    Layali Othman, 37, from Ramallah said her family received a permit for the holiday and had planned to visit Jaffa and Jerusalem. At times the attacks were daily occurrences, but they have relatively subsided in recent months.
    London's Grenfell Tower May Have Used Banned Exterior Cladding in Renovation

    London's Grenfell Tower May Have Used Banned Exterior Cladding in Renovation

    During her visit - which lasted less than an hour - she also spoke to volunteers and community leaders at St Clement's Church. The mayor of London Sadiq Khan has said the Grenfell Tower disaster was a outcome of years of neglect by politicians.
    Ex-minister warns May against Brexit betrayal

    Ex-minister warns May against Brexit betrayal

    Dr Fox is meeting a congressional delegation on Capitol Hill in an attempt to pave the way for a UK/US Free Trade agreement. They are due to give a joint news conference after talks among their teams lasting seven hours.
  • Four-way tie for lead at US Open

    Four-way tie for lead at US Open

    The Englishman began the day one shot behind Fowler and quickly joined the American at the top of the leaderboard. Open, mainly because they couldn't keep it out of the thick fescue that frames the wide fairways at Erin Hills .
    Short Interest in Kinross Gold Corporation (KGC) Decreases By 23.4%

    Short Interest in Kinross Gold Corporation (KGC) Decreases By 23.4%

    The stock of Kinross Gold Corporation (USA) (NYSE:KGC) has "Equal Weight" rating given on Friday, February 12 by Barclays Capital. ING Groep NV purchased a new position in Kinross Gold Corporation during the fourth quarter valued at approximately $227,000.

    Stock Moving Towards 52-Week Low EnLink Midstream, LLC (NYSE:ENLC)

    Finally, TheStreet downgraded shares of EQT Midstream Partners, from a "b" rating to a "c+" rating in a research note on Thursday. Turning to Noble Midstream Partners LP (NYSE:NBLX), its shares were trading at $45.73 a retreat of $-2.59, on the trading floor.
  • Pam Anderson Blasts British Prime Minister In Defense of Julian Assange

    Pam Anderson Blasts British Prime Minister In Defense of Julian Assange

    But Pamela was full of praise for the PM's rival Jeremy Corbyn who "could and should be the next prime minister". Model-actress Pamela Anderson has shared a love-filled post for Julian Assange on her official blog.

    Callon Petroleum Company (CPE) Getting Somewhat Positive Media Coverage, Study Finds

    Scoria Capital Partners LP acquired a new position in Callon Petroleum Company during the third quarter valued at $2,622,000. The Company focuses on the acquisition and development of unconventional oil and natural gas reserves in the Permian Basin.

    One suspect held in London mosque attack

    Witness Abdiqadir Warra told AFP the van "drove at people" and some of the victims were carried for several metres along the road. That incident came just a week after the Manchester Arena attack, which killed 22 and left more than 100 injured.
  • Brooks Koepka wins US Open to secure first-ever major championship

    Brooks Koepka wins US Open to secure first-ever major championship

    A fan ran up to Koepka with a flag for him to sign. "It was a long phone call for us - it was like two minutes", Koepka said. Then a couple things go the other way and maybe he doesn't win and finishes fourth or fifth like he has a couple times.
    Actress Anjali Shrivastav found dead in Andheri apartment

    Actress Anjali Shrivastav found dead in Andheri apartment

    Her landlord used a spare key to open the door only to find her hanging from the ceiling fan. Kritika Choudhary, a resident of Haridwar, was a struggling actress in the film industry.
    Memo Outlines Education Dept. Plans to Scale Back Civil-Rights Efforts

    Memo Outlines Education Dept. Plans to Scale Back Civil-Rights Efforts

    Media reports indicated DeVos privately resisted the move, but agreed go along with it on the insistence of President Trump. The guidance sparked legal challenges and a national debate about transgender students' rights.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.