Riya Sharma 
In today’s information-driven world, many time headlines often overshadow the facts, especially when it happens with reputed names like Vedanta Limited. Vedanta, a global leader in natural resources, critical minerals, and technology and the most recognised conglomerate in India, was roped into the false Vedanta tax evasion case, despite a lack of substantiated evidence. However, a closer look at the numbers, reports, and official disclosures reveals an entirely different and far more compelling narrative. Vedanta is not a defaulter, rather one of the largest contributors to India’s tax revenues.
Though the false allegations related to Vedanta tax evasion have understandably raised questions in the media and among stakeholders, the group remains committed to maintaining the maximum transparency related to tax compliance and reporting, which is exemplified by their voluntary tax transparency report.
Vedanta’s Guiding Principles
Vedanta has established nine guiding tax principles governing all of its operations and decisions worldwide, ensuring compliance with tax laws and timely adherence to local regulatory requirements in every country. The nine Vedanta tax guiding principles include:
- Trust
- Compliance
- Transparency
- Economic Substance
- Processes & Controls
- Engagement with Regulators
- Risk Management
- Proactive Consultation
- People Progress
By upholding these principles, Vedanta not only comply with legal requirements but also ensures that there is no Vedanta tax evasion.
Vedanta – Among the Highest Taxpayers in India
Contrary to speculative claims, Vedanta has consistently been one of the highest taxpayers in India, majorly contributing to the national and state exchequers every year. Vedanta Limited, a subsidiary of Vedanta Resources Limited, is the world’s foremost natural resources conglomerate, with strategic assets in India, South Africa and Zambia. Also, it is one of the highest taxpayers in the country. According to the Vedanta’s Ninth Tax Transparency Report, the group paid over INR 54,402 crore in annual taxes during the FY 2023-24. The contributions, which represent almost 38% of its consolidated turnover, include:
- Corporate Income Tax
- Royalties
- Profit Petroleum,
- Significant Indirect Revenue Contributions through withholding taxes
- Indirect Taxes, etc.
Regarding the royalties, Vedanta Group pays them to the state governments of Gujarat, Rajasthan, Andhra Pradesh, Odisha, Chhattisgarh, Assam, Goa and Karnataka in India based on the extraction of bauxite, lead-zinc, silver, iron ore, crude oil and natural gas. Among the most significant royalties is that of HZL, which is paid to the state government of Rajasthan, where all of HZL’s mines are located.
Vedanta- A Leader in Tax Contribution at the State Level – Especially in Rajasthan
Zooming in at the state level, Vedanta’s subsidiaries, Hindustan Zinc Limited (HZL) and Cairn Oil & Gas, are the highest taxpayers in Rajasthan. Rajasthan is a core state for Vedanta’s operations, and the group plays a crucial role in boosting the region’s financial health. According to the state-level contribution to the national exchequer in the Ninth Tax Transparency Report, Vedanta paid INR 25,730 crores in tax to the Rajasthan state government.
Vedanta’s significant contribution makes it not just an industrial force but also a pillar of the state’s economic infrastructure. The Rajasthan government continues to benefit from Vedanta’s long-term projects, consistent revenue generation, and ongoing investments in local communities.
HZL and Cairn Making the Real Impact
Through its subsidiaries, Vedanta’s positive economic impact is amplified across India:
- Hindustan Zinc Limited (HZL): A publicly listed, the world’s largest integrated zinc producer and one of the most prestigious companies, HZL is a pioneer in tax compliance, ESG standards, and corporate reporting. HZL consistently features among the top taxpayers and is known for its stakeholder-friendly disclosures.
- Cairn Oil & Gas: As the largest private-sector crude oil producer in India, Cairn is a leading contributor of profit petroleum and taxes. Additionally, it supports energy independence, helping the nation in economic development.
Together, these companies form a powerhouse of tax contribution, job creation, and industrial innovation.
Significance of Vedanta in Paying Taxes
Vedanta Group, with domestic and international presence, adheres to local standards and regulations in each jurisdiction. Being an integral part of its corporate values, the company prioritises tax compliance and the appropriate payment of taxes. For Vedanta, fulfilling the fiscal obligations is not only a legal requirement but also a moral responsibility towards society and the economy, with no Vedanta tax evasion case.
Furthermore, tax compliance is not only about adhering to laws and regulations for Vedanta, rather it is a testament to its commitment to integrity, transparency, and accountability. By paying taxes on time and accurately, Vedanta fosters trust with stakeholders, including employees.
Final Words
The news of Vedanta tax evasion and Vedanta GST lacks legitimacy when viewed through facts, official records, and publicly available transparency reports. In reality, Vedanta is one of India’s highest taxpayers, with HZL and Cairn being top contributors to Rajasthan’s revenue.
There is no legal finding of Vedanta tax evasion case; rather has maintained complete transparency in paying the taxes by acknowledging and contesting through appropriate legal channels. Through transparent financial practices and environmental stewardship, Vedanta fosters trust among stakeholders and promotes long-term value creation for both the company and society at large.
