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.
The Parliament has passed the Taxation Laws (Amendment) Bill, 2021, which withdrew the retrospective tax clause that was added in 2012.
The government will give 45 days to companies to withdraw all claims and seek a settlement of the contentious retrospective tax disputes after the final rules are notified, Mint has reported.
The Centre aims to conclude cases in three to five months, depending on the status of the litigation, the report said. The process is expected to take longer in instances where companies have initiated appeals, arbitration, or arbitral award enforcement measures.
After a company drops a case, the tax office will accept or reject the tax demands within 15 days, the report added.
Moneycontrol could not independently verify the story.
The draft rules were released for public feedback on August 28, and the consultation period ends on September 4.
Also read: ‘Repealing retrospective tax a reformist and pragmatic move by govt, but alone is not enough to attract foreign money
The Parliament has passed the Taxation Laws (Amendment) Bill, 2021, which withdrew the retrospective tax clause that was added in 2012.
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.
This move will provide relief to companies involved in 17 disputes under the law, with companies including Vodafone and Cairn Energy.
