Cairn tax blow: India must walk the talk on ease of doing business
India must necessarily consider a policy change that aligns with the promises made by this government and repeal the retroactivity in the application of the indirect transfer provisions Ritesh Kumar December 24, 2020 / 08:27 PM IST
The retrospective tax law enacted in 2012 is coming back to haunt India. On Wednesday, an international arbitration tribunal ruled that India’s tax demand from Cairn Energy Plc is in breach of ‘fair and equitable treatment’ guaranteed under the bilateral investment treaty. The court also ordered New Delhi to compensate Cairn for the total harm suffered and pay $1.2 billion, that is roughly Rs 8,800 crore, in damages.