Legal News

Vodafone wins international arbitration against India in ₹14,200 crore tax dispute case

The British telecom giant moved the Hague-based International Court of Justice (ICJ) in 2016.

Vodafone Group Plc has won an international arbitration case against the Indian government in a ₹14,200 crore retrospective tax dispute.

The tribunal ruled that the Indian government’s imposition of tax liability on Vodafone is in breach of the investment treaty agreement between India and the Netherlands, one of the sources said.

Vodafone in 2013 had invoked India-Netherlands bilateral investment treaty seeking a resolution to the tax demand imposed on it by enacting a tax law with retrospective effect to sidestep a Supreme Court judgement that went in the company’s favour.

Conciliatory proceedings were initiated to resolve the dispute but differences led to a breakdown following which arbitration was initiated.

The government had initially slapped a tax demand of ₹7,990 crores on Vodafone for failing to deduct tax on capital gains made over its $11-billion acquisition of 67% stake in the mobile phone business owned by Hutchison Whampoa in 2007.

Source: The Hindu

Categories:Legal News

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