Finance minister Nirmala Sitharaman says rules on retro tax to be framed soon

New Delhi: Finance Minister Nirmala Sitharaman on Monday said the rules that will lead to scrapping of the retrospective tax demands made on companies such as Cairn Energy Plc and Vodafone Plc will be framed soon. Parliament earlier this month passed a bill to scrap all tax demands made using the 2012 retrospective tax legislations. The bill provides for government refunding the retro tax to companies provided all legal challenges are withdrawn.

Now the rules for the same have to be framed, which Sitharaman said will be done soon.

“I will follow the law passed in Parliament,” she said.

The finance minister said her ministry officials are discussing with Cairn, Vodafone on closure of retro tax cases, refund and settlement.