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Posted: July 10, 2018 1:13:48
Following this sale, Cairn retains its stake in VL is now about three percent. The income tax department sold part of Cairn Energy's stake worth $ 216 million (about 1,500 rupees) to Vedanta Ltd. (VL). retrieves part of the retrospective tax of Rs 10,200 crore that she had raised against the British firm.
Cairn has now been informed by the IT department that he has sold some of Cairn's stake in VL, realizing and seizing a proceeds of $ 216 million. Following this sale, Cairn's retained stake in VL is now about three percent. It's possible that the IITD is making other sales, "Cairn said in a statement
According to Cairn, the IT department continued to argue its retrospective tax claim against Cairn while the company was not able to sell it. treaty arbitration was in progress. "To date, the IT department has received dividends from Cairn on its stake in Vedanta totaling approximately $ 155 million and has offset a $ 234 million tax rebate due to Cairn as a result of an overpayment of capital gains tax.
He stated that all of these enforcement actions by the IT Department are dealt with in Cairn's claim in arbitration. Cairn's requested redress in arbitration is the monetary value required to restore Cairn to the position it would have had in 2014, but for the actions of the Government of India in violation of the Treaty. " therefore, the status of Cairn's property seized in India does not affect the merits of Cairn's claims, the amount of the relief sought, or the enforceability of the arbitral award, "said Cairn
after the surrender of part of this participation. Vedanta and the seizure of the product by the IT department, Cairn will depreciate the book value of its investment in Vedanta which will result in a depreciation charge to the semester equal to the value of the total shares notified as having been sold by the IT department to that time, said Cairn.
"Cairn continues to have a high level of confidence in the merits of its claims in arbitration.Cairn calls for a total restitution for losses totaling about $ 1.3 billion resulting from the # 39; expropriation by India of its investments in India in 2014, and the unfair and inequitable treatment of such investments by India, due to the imposition of retrospective tax measures ". merger of Cairn India Limited (CIL) with VL completed in April 2017. Under the terms of the merger, Cairn received common shares and preferred shares of Vedanta in exchange for the remaining 10 percent interest in CIL. As a result, Cairn held a 5 percent stake in Vedanta plus a stake in preferred shares. This investment was valued at $ 1.1 billion in December 2017.
In January 2014, Cairn UK Holdings Limited, a direct subsidiary of Cairn, was notified by the IT department that it could not sell its stake about 10% in CIL, which at the time had a market value of about $ 1 billion. "In this notification, the IT department claimed to have identified unbadessed taxable income resulting from certain intra-group share transfers undertaken in 2006, these transactions being undertaken to facilitate the CIL IPO in 2007. The notification referred to Indian retrospective rights Cairn said:
The badessment by the IT department of the principal tax due on 2006 transactions is Rs 10,200 crore (1.6 billion dollars), plus applicable interest and penalties Interest is currently charged on capital at a rate of 12% per annum beginning in February 2016, although this is subject to the call of the Indian Department of IT Department that interest should be retroceded to 2007, according to the report.The penalties are currently valued at 100 percent of the principal tax due, although the CUHL then appealing that penalties should not be imposed given the retrospective nature of the tax collected.
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