Several noted domestic and international companies including the likes of Sanofi Aventis, Mitsui, WNS, Genpact and the Tata Group are looking to settle lawsuits or arbitration proceedings against the government following the latter's move to nullify the controversial 2012 retrospective tax amendment, reports Economic Times.
This comes as a similar approach was also adopted by Vodafone and Cairn Energy. The two had been fighting high-profile cases contesting the government’s cumulative backdated tax claims of as much as Rs 13,000 crore.
As many as 17 companies are said to be involved in legal fights at various levels and about half a dozen are said to be ready to take up the government’s offer to settle the tax disputes.
The government has promised to refund taxes already collected and withdraw from legal or arbitration matters if the companies stand down and let go of claims for damages, interest or other costs.
It should be noted though that the government is yet to put in the paper a clear set of rules to drive such settlements.
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