Business News

Cairn Energy tax dispute: I-T department orders coercive action to recover Rs 10,247-crore tax

The oil company said it will continue with the arbitration proceedings against the retrospective tax demand.

The Income Tax Department has ordered coercive action against oil and gas exploration company Cairn Energy Plc to recover Rs 10,247 crore of retrospective tax after the British firm lost a case challenging the move before an international arbitration panel, reported PTI on Monday.

In order to recover the dues, the I-T department has ordered taking away $104 million (Rs 6.69 billion) dividend due to it from its remaining stake in the erstwhile subsidiary Cairn India, which is now called Vedanta Ltd.

Cairn Energy will also not receive the Rs 1,500-crore tax refund that is owed to them. The I-T department will now proceed to take over the 9.8% shareholding Cairn Energy had in Cairn India.

In a statement, the oil company confirmed the I-T department’s move, but said it will continue with the international arbitration proceedings against the retrospective tax demand. The company said it has a high level of confidence in its case under the UK-India Bilateral Investment Treaty, and is also seeking damages equal to the value of the its residual shareholding in Cairn India.

The retrospective tax is on short-term capital gains that Cairn had made when it transferred ownership from Cairn UK Holdings to Cairn India in 2006.

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Advice from an ex-robber on how to keep your home safe

Tips on a more hands-on approach of keeping your house secure.

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Whether it’s a dodgy back door, a misaligned window in your parent’s room or the easily accessible balcony of your kid’s room, identify signs of weakness in your home and fix them. Any sign of neglect can give burglars the idea that the house can be easily robbed because of lax internal security.

3. Think like Kevin McCallister from Home Alone

You don’t need to plant intricate booby traps like the ones in the Home Alone movies, but try to stay one step ahead of thieves. Keep your car keys on your bed-stand in the night so that you can activate the car alarm in case of unwanted visitors. When out on a vacation, convince the burglars that the house is not empty by using smart light bulbs that can be remotely controlled and switched on at night. Make sure that your newspapers don’t pile up in front of the main-door (a clear indication that the house is empty).

4. Protect your home from the outside

Collaborate with your neighbours to increase the lighting around your house and on the street – a well-lit neighbourhood makes it difficult for burglars to get-away, deterring them from targeting the area. Make sure that the police verification of your hired help is done and that he/she is trustworthy.

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