Cairn India takes authorities to court over $3.3 billion tax demand | Reuters

Cairn India Ltd(CAIL.NS), India’s largest private-sector oil producer, said on Monday it had moved the Delhi High Court against a $3.3 billion tax demand from Indian authorities related to its listing in 2007.

Cairn India employees work at a storage facility for crude oil at Mangala oil field at Barmer in Rajasthan August 29, 2009. REUTERS/Parth Sanyal/Files

The company, a unit of London-listed Vedanta Resources Plc (VED.L), said it had filed a writ petition seeking “quashing/setting aside” of the order passed by the tax authorities.

Cairn India received last month the demand of about 204 billion rupees from Indian tax authorities for an alleged failure to deduct withholding tax on capital gains made by its former parent, Cairn Energy Plc (CNE.L), during a reorganisation ahead of its market listing. Vedanta said last month it would file a notice of claim against the Indian government under the UK-India bilateral investment treaty.

Cairn Energy, which received a tax demand of more than $1.6 billion related to the same case, has also filed a notice of dispute under the bilateral investment treaty.

Cairn India shares had gained 0.3 percent in morning trade on Tuesday in a broader market that was up about 0.2 percent.

via Cairn India takes authorities to court over $3.3 billion tax demand | Reuters.

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