Tax indemnity clause leads to friction among buyers & sellers of firms

The Centre had allowed the tax dept more time to relook at old transactions

Buyers and sellers of companies are clashing over how long they are willing to take responsibility for future tax liabilities, after the Centre allowed the tax department more time to relook at old transactions.
 
This has emerged as a headwind for private equity (PE) players, in particular. It comes amid a record number of PE-backed mergers and acquisitions (M&As) over the last two years. PE funds are essentially schemes, which take money from a number of rich investors and use it to buy large stakes in companies. Sometimes, they buy out the existing owner. Funds were doing as many