Setback to India, intl panel rejects stay on Cairn arbitration
PTI In a setback to India, an international arbitration panel has rejected its demand for a stay on an arbitration initiated by British oil explorer Cairn Energy plc against a Rs.10,247 crore retrospective tax notice. The panel, comprising three judges of international repute, has also turned down India’s application for bifurcation of the issue of whether tax is covered under India-UK bilateral investment protection treaty, sources privy to the development said. Income tax department had in January 2014 charged Cairn Energy of making capital gains on transfer of India assets to a newly created firm, Cairn India and listing it on stock exchanges. Instead of applying long-term capital gains tax, it levied a short-term capital gains tax and slapped a draft tax demand ...
Cairn Energy challenges IT departments claim
Sai Nikesh | The Dollar Business The United Kingdom based oil exploring company Cairn Energy on Wednesday challenged the Indian Tax Department’s claim on the company to pay a tax of more than $ 1.6 billion. Condemning the demand from the tax department, the company was said to have filed a formal dispute under UK-India Investment Treaty, according to the reports. When The Dollar Business sought clarification on whether the issue would impact the India-UK bilateral relationship, Adish C Aggarwala, Chairman, All India Bar Association, said, “This issue will not have any impact on the bilateral trade between the two countries.” However, the bilateral trade is an equal requirement for both the economies and there is a responsibility on both ...
