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Five More Cos Look to End Litigation, Arbitration

A clutch of large companies, including Sanofi Aventis, Mitsui & Co, WNS, Genpact and the Tata Group, are looking to settle lawsuits or arbitration proceedings against the government after it recently moved to nullify a 2012 retrospective tax amendment.

This follows a similar approach by Vodafone and Cairn Energy, which have been fighting high-profile cases contesting the government cumulative backdated tax claims of as much as Rs. 13,000 crores.

About 17 companies are involved in legal wrangles at various levels and about half a dozen are ready to take up the government offer to settle the tax disputes, industry insiders told ET.

The government has promised to refund taxes already collected and withdraw form legal or arbitration matters, if the companies stand down and let go of claims for damages, interest or other costs. It has, however, not yet put in place clear rules for such settlements.

The companies have initiated steps to meet with officials, the sources said, adding that they have reached out to legal and tax advisors in the county to resolve the issue at the earliest. S-ET

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