Kern will not seize the UK and French assets of the Indian government

- Government of India will pay Rs 7,900 crore tax refund

- The government owed Rs 1.1 lakh crore to foreign companies due to retrospective tax provision.

New Delhi: UK-based Kern Energy on Wednesday said it has given a written assurance to the Indian government that it will not seize assets from France to the UK. Kearn dropped the case after the Indian government offered to settle the retrospective tax dispute. As a result, the Indian government will reimburse Rs 2,500 crore in taxes collected from Kern.

Now the provisions of the retroactive tax system have to be dropped to comply with the provisions of the new law. The company has also assured the Indian government that it will not take any action against it anywhere in the world.

The government has acknowledged the matter and given Form Two to Kern. In it, he said he would refund the tax levied as per the retrospective tax demand. After the issuance of Form-II, Kern will drop the legal process and get a refund of Rs 3,500 crore.

Kern said he has accepted the Taxation (Amendment) Bill 2061 in a new law recently introduced with the Indian government. Under the Act, Kern will receive a refund of all taxes levied by the Government of India with retrospective effect.

He said that subject to certain provisions, the Taxation Amendment Act gives Kern the right to a refund of Rs 2,500 crore levied in January 2016. To improve India's tarnished image as a lucrative investment hub due to retrospective taxation, the government dropped a total of Rs 1.1 lakh crore worth of claims against multinationals like telecom group Vodafone, pharmaceutical company Sanofi and Brewer Submiller and Kern under the new law.