Govt's retro tax settlement with Cairn Energy may hinge on Vedanta case

India lost the international arbitration with Cairn Energy at The Hague in December and the former was given an award of $1.2 billion

The Union government’s offer of settling the retrospective taxation case with Cairn Energy may hinge on Vedanta withdrawing the ongoing arbitration from the Singapore Tribunal on the same issue.

The government has offered to refund Cairn Energy Rs 7,900 crore that it had collected under the retrospective tax demand on fulfilment of certain conditions, including withdrawal of pending litigation and furnishing of an undertaking to the effect that no claim for cost, damages, interest, etc., would be filed. This condition is also part of the Taxation Laws (Amendment) Bill, 2021, passed by Parliament earlier this week.

The proposal of Vedanta withdrawing a