Vodafone Idea Slips on Reports of India Challenging International Arbitration Ruling in Singapore
India reportedly challenged the international arbitration court’s ruling in favour of Vodafone Plc in the retrospective tax case. The shares of Vodafone dropped almost 6 percent in morning trades and was trading at Rs 10.25, down 3 percent.
Mumbai, December 24: India reportedly challenged the international arbitration court’s ruling in favour of Vodafone Plc in the retrospective tax case. The shares of Vodafone dropped almost 6 percent in morning trades and was trading at Rs 10.25, down 3 percent.
On September 24, the Hague-based Permanent Court of Arbitration (PCA) ruled in Vodafone's favour in the arbitration case against the income tax (IT) department's retrospective demand of Rs 22,100 crore. As per reports, the international arbitration tribunal at Hague ruled that the Indian government's imposition of tax liability on Vodafone was in breach of the investment treaty agreement between India and the Netherlands. Vodafone Idea Rebrands Itself as Vi; Fresh Logo, Signage of New Brand Identity to be Put Up at Various Stores And Service Centres.
The tribunal further ruled that the government must cease seeking dues from Vodafone and pay more than Rs 40 crore to the company as partial compensation for its legal costs. Prime Minister Narendra Modi had also reviewed the matter at an inter-ministerial group (IMG) meeting, which was reported on December 3.
The tax dispute, which involves an interest of Rs 12,000 crore and Rs 7,900 crore in penalties, is 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.
(The above story first appeared on LatestLY on Dec 24, 2020 12:48 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).