A senior government official on Thursday said that India has challenged in Singapore an international arbitration court’s verdict against it over a $2 billion tax claim involving Voda🐼fone Group Plc.
The issue is being watched closely af꧑ter a fresh disappointment for the income tax (I-T) department in the Cairn case.
It has been also ruled that the government’s retrospective action — piloted by the foreign tax division of the I-T departmenཧt — violated its commitment to “fair and equitable treatment” under the biﷺlateral investment protection treaties, news agency Reuters reported.
As per the internat🔥ional arbitration tribunal at Hague, the Indian government's imposition of a tax liability on Vodafone was in breach of the investment treaty agreement between India and the Netherlan♐ds.
The tribunal, in its ruling, had said the government must cease seeking dues fromඣ Vodafone and pay more than â¹ 40 crore to the𓃲 company as partial compensation for its legal costs.
The tax dispute, which involves interest of â¹ 12,000 crore and â¹ 7,900 crore in penalties, stems from Vodafone's acquisition of the Indian mobile assets 🧸from Hutchison Whampoa in 2007. The government said Vodafone was liable to pay taxes on the acquisition, which the company contested.
