Cairn, Vodafone can settle tax issue with govt: Rev Secy

Indian Revenue Secretary Hasmukh Adhia has said that the government has given Cairn and Vodafone the option to settle its tax issues. The statement comes a few days after Finance Minister Arun Jaitely said the government was keen on an early resolution of pending tax disputes with foreign companies.

Adhia says the companies have been told that they can sit and discuss the tax issues with the government. Cairn India has already appointed an arbitrator and the government will follow suit.

In order to tackle such tax issues, the government is working on a separate roadmap for out of court settlement of litigation matters.

Furthermore, Adhia says the retrospective taxation matter will not be handled by the Income Tax (IT) panel as the retro tax is not a part of the Terms of Reference (ToR) for IT panel.Watch video for more.