Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: due date for vat payment :: ACCOUNTING STANDARD :: empanelment :: VAT RATES :: TDS :: cpt :: VAT Audit :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: list of goods taxed at 4%
Indirect Tax »
 CBEC rechristened Central Board of Indirect Taxes and Customs
 Income tax department to challenge ITAT relief to Cairn Energy in HC
 5 crucial ways how doing business will be different under GST
 What is the lowdown on the Goods and Services Tax
 Ineligible Input Tax Credit Under Gst Regime
 What is GST, how is it different from now: Decoding the indirect tax regime
 Indirect tax collection can fall short of FY’17 target
 GST in last lap: What's in it for businesses, firms and most importantly, you?
 Indirect tax collection: All you want to know about stuck cases and rejected appeals
 Government achieves revised tax collection target
 Keep indirect taxes 'low, affordable' under GST

Income Tax Department surveys Sesa Sterlite offices on tax refund claims
March, 24th 2014

The Income Tax Department today conducted 'survey' at different offices of Sesa Sterlite, the main operating company of London-listed Vedanta Resources, in connection with about Rs 1,500 crore tax refund claimed by the company.

Sources said that the 'survey' was conducted under section 133 of the IT Act at 3 offices of Sesa Sterlite - Delhi, Mumbai and Goa as the Income Tax department was looking for papers related to merger of Sterlite Industries and other Vedanta entities into Sesa Goa. They added that Sesa Sterlite had sought tax refunds of about Rs 1,500 crore after formalities related to the amalgamation scheme between Sterlite Industries, Vedanta Aluminium, Sterlite Energy and Madras Aluminium Company with Sesa Goa were completed last year in August.

However, the claim has not yet been accepted by the Income Tax Department as it suspects that the merger was designed in such a way that the new entity (Sesa Sterlite) can claim tax refunds by setting off losses of loss-making companies against the profit making firms, they said. Accordingly, the appointed date (day from which the scheme becomes effective) was fixed retrospectively and different dates were applicable to different firms.

Net result of this process was that the new entity (Sesa Sterlite) became eligible for claiming refunds against the excess taxes paid by the profit making firms, the sources said, adding that today's survey was in this regard only. A Sesa Sterlite spokesperson did not respond to calls. However, officials of the company confirmed that the Income Tax Department has conducted the survey at various offices.

On February 25, 2012, Vedanta had announced plans to restructure its various businesses and has proposed to merge Sterlite Industries, Vedanta Aluminium, Sterlite Energy and Madras Aluminium Company with Sesa Goa, thereby creating a new entity Sesa Sterlite.

The company had fixed separate appointed dates for different companies. For Sterlite Industries and Vedanta Aluminium, the appointed date was April 1, 2011, while for Sterlite Energy, it was January 1, 2011.

For hiving off power business of MALCO to Vedanta Aluminium, the appointed date was April 1, 2012 and thereafter, rest of the entity of MALCO was proposed to be merged with Sesa Goa as and when the amalgamation scheme becomes effective. Noting that the merger was announced on February 25, 2012, the IT department suspects that the appointed dates were deliberately kept retrospectively by Vedanta, so that the new entity (Sesa Sterlite) can claim huge tax refunds.

The IT Department had also filed a case in Goa Bench of Bombay High Court last year challenging the amalgamation and contended that the merger should be allowed to become effective with the date from when the Court had given final approval to the merger (August 12, 2013).

However, the tax department lost the case as the court ruled that the department does not have any locus standi and the merger issue should be dealt by the Ministry of Corporate Affairs (MCA). Its appeal in the Division Bench was also rejected on the same issue, following which it moved to the Supreme Court, which decided in November last year that the appeal can be heard only if the MCA files a special leave petition, sources said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Website Ranking Website Ranking Company Website Positioning Alexa Ranking Website Promotion Website top 10 ranking website top 10 promotion search engine result promotion Strategic Internet Marketing Website Optimization Website Ranking Factors

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions