UK-based Cairn Energy executives have met finance ministry officials on August 11 and sought clarifications on the settlement of the retrospective tax dispute.
One of the clarifications includes when and how the levies collected will be refunded, The Economic Times has reported. Cairn executives are expected to meet finance ministry officials again this week to discuss the settlement procedure.
"Cairn is not rejecting the proposal being offered by the government, but certain aspects such as how quickly can the refund take place, where and what needs to be done et al, has to be laid out clearly," a source told The Economic Times.
Moneycontrol could not independently verify the story.
Also read: Exclusive | How the govt set about burying retrospective tax in complete secrecy
The Parliament has passed the Taxation Laws (Amendment) Bill, 2021, which withdrew the contentious retrospective tax. The move will provide relief to telecom company Vodafone and Cairn Energy, which are locked in separate retrospective tax disputes with the government.
In December 2020, the Permanent Court of Arbitration at The Hague asked India to return $1.2 billion to Cairn, plus interest of $500 million.
Under the amendment, the government will refund the amount collected as retrospective tax without interest. The companies will also have to give an undertaking that they will not seek costs, damages, or interest.
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