Finance Minister Arun Jaitley today said the government will not coerce companies like Vodafone Group and Cairn Energy to avail of its one-time offer to settle their retrospective tax cases. He was replying to question about the tax notices sent to Vodafone and Cairn last month despite the issue being under arbitration. Talking to journalists at PTI office in New Delhi, the Minister clarified that though government is committed not to create fresh demand using retrospective tax law, notice would go if there are pre-existing assessment orders.<br/><br/>Mr. Jaitley said, it was for these companies to take a call on it. He added that they can either accept the offer of paying principal tax amount and get waiver from interest and penalty, or continue litigation. The retrospective tax scheme will open on June 1 and companies availing of it must provide a proof of withdrawal of<br/>all legal proceedings including arbitration. Mr Jaitley said he had in his Budget for 2016-17 proposed four different schemes to clean up past tax issues.<br/><br/>UK oil explorer Cairn Energy is facing a tax demand of 10,247 crore rupees on alleged capital gains made in a 2006 business reorganisation it carried out in its India unit. British telecom giant Vodafone is also facing a total of 14,200 crore rupees in tax, interest and penalty over its 11-billion dollars acquisition of 67 per cent stake in the mobile-phone business owned by Hutchison Whampoa in 2007. Both the firms have disputed any tax was due and challenged the demands by initiating international arbitration.
News On AIR | March 27, 2016 7:17 PM
Govt. will not coerce companies in retrospective tax cases, says FM Arun Jaitley