Citing a clause within the scheme, two individuals stated Vivad Se Vishwas might cut back complete tax liabilities of Cairn and Vodafone by as much as 50% aside from waiving curiosity and penalties.
By Rajeev Jayaswal | Livemint
PUBLISHED ON FEB 15, 2021 11:49 PM IST
The continuing tax amnesty scheme, Vivad se Vishwas, is a viable choice inside the authorized framework to amicably resolve retrospective tax litigation between the Indian authorities and two firms—Cairn Power Plc and Vodafone Group Plc—that collectively contain a sum of over ₹30,000 crore, together with curiosity and penalties, individuals conscious of the event stated.
It gives a really perfect resolution for each the Indian authorities and the 2 firms to settle the vexed problem shortly, at the very least 4 individuals stated, requesting anonymity. Citing a clause within the scheme, two individuals stated Vivad Se Vishwas might cut back complete tax liabilities of Cairn and Vodafone by as much as 50% aside from waiving curiosity and penalties. In keeping with the Earnings-Tax Division’s web site, the actual clause says: “If a problem in taxpayer’s pending enchantment already determined in favor of taxpayer by increased appellate discussion board or if [Income-Tax] Division has filed enchantment, quantity payable is 50% of aforesaid quantities.”
A 3rd particular person, nevertheless, disagreed on the matter. He stated the clause was relevant for instances heard in home appellate boards solely and never worldwide tribunals. A fourth particular person stated: “It might depend upon interpretation of the regulation, and authorities might make some particular dispensation with a view to resolve the 2 instances that are lingering on for a few decade.”
“In keeping with the scheme, the problems have already determined in favour of assessee [Cairn and Vodafone]. The income-tax division has already appealed within the case of Vodafone and has determined to enchantment towards the tribunal’s verdict on Cairn. Therefore, this scheme is out there to the corporations, and accordingly the tax quantity payable in each instances might be diminished by 50%,” the fourth particular person added. The primary particular person talked about above stated the Centre and firms could talk about potential options to the disputes. “Vivad se Vishwas is one such resolution, which is anticipated to be mentioned when senior executives of Cairn will meet with authorities officers this week. Else, Indian authorities are legally certain to contest verdicts of the international tribunals as per the regulation of the land as no funding treaties impinge upon the sovereign’s taxation rights,” he stated.
Vodafone Group and the finance ministry didn’t reply to electronic mail queries on this matter. Cairn Power provided no remark.
Abhishek A Rastogi, a companion at regulation agency Khaitan & Co., stated: “The continuing tax amnesty scheme is a practical choice to amicably resolve retrospective tax litigation between the Indian authorities and two separate firms i.e. Cairn Power Plc and Vodafone Plc. In reality, the scheme might be fully customised to deal with retrospective amendments and bilateral funding treaties. The decision shall be helpful to each taxpayers from financial savings perspective and to the federal government from the worldwide notion perspective.”
Thanks for subscribing to our each day e-newsletter.