Fin Min notifies rules to bury retro taxation

The Finance Ministry has notified rules to implement the new law burying retrospective taxation. These propose a framework to end past litigations and a mechanism to indemnify from any possible future litigations.

The rules have nine specified conditions as explanation for the law. Six of these conditions prescribe that companies concerned will irrevocably withdraw, discontinue and not pursue any law suits, arbitration, conciliation or mediation either in India or abroad. They will have to withdraw proceedings to enforce or pursue attachment in respect of any award against the Republic and/or all Indian affiliates. While two conditions are related with a structure for dealing with possible litigations in future, the final condition is on public declaration.