Vedanta, like Cairn India and will drop all tax appeals against the government of India (GoI) in order to settle under the new retrospective tax laws.
Billionaire Anil Agarwal-led Vedanta will drop all tax appeals against the government of India (GoI) in order to settle under the new retrospective tax rules. The company will withdraw tax appeals in any court in India and outside.
The Ministry of Finance on October 1 notified rules that when adhered to will lead to the government withdrawing tax demands raised using the 2012 retrospective tax law and any tax collected in the enforcement of such demand is paid back.
As many as 14 companies against whom retrospective tax demands were raised have approached the government to settle cases, Revenue Secretary Tarun Bajaj has said.
“We are hopeful of resolving all these cases before the end of the financial year,” he told CNBC-TV18.
Asa company, Vedanta is considering restructuring its business and has constituted a committee to look at ways to unlock value via this exercise. In other words, the aluminium, iron and steel, and oil and gas businesses are likely to be housed in standalone listed entities.
Vedanta shares closed at Rs 357.5 per share, up 2.2 percent. In the past five sessions, the stock is up five percent while in the past six months it has surged 30 percent.
(Edited by : Abhishek Jha)