INDIAN energy firm Essar Energy was yesterday landed with a bill for $1.235bn (£759m) in sales tax it owes to its government.
The firm received a demand notice from the tax authorities following a decision by the Supreme Court of India over the repayment of deferred sales tax by its subsidiary Essar Oil.
The company said it is in discussion with the government regarding a repayment schedule and is in the process of filing a petition seeking a review of the decision in the Supreme Court, which is expected to take between 60 and 90 days to complete.
In a statement the FTSE 100-listed company said: “As has been made clear in previous disclosures, Essar Oil has already made provision for repayment of part of the sales tax deferment liability. This liability has been assigned to a third party.
“Essar Energy will make a further announcement when more detail becomes available.”
