Mumbai, September 25: Vodafone on Friday won an arbitration case against India over Centres demand of Rs 20,000 crore retrospective tax. The Permanent Court of Arbitration in Hague ruled in favour of the United Kingdom's telecom major. The court, in its ruling, said that the conduct of India's Income Tax Department is in breach of 'fair and equitable' treatment. Vodafone Idea to Raise Rs 25,000 Crore, Board of Telecom Operator Approves Plan.

DMD Advocates represented Vodafone at the Hague Court. Vodafone sought protection from the retro tax demand through arbitration under the India-Netherlands Bilateral Investment Protection Agreement. According to a report published by Reuters, the tribunal ruled that the conduct of the Indian government to impose tax liability on Vodafone is in breach of the investment treaty agreement between India and the Netherlands. Vodafone Idea Rebrands As ’VI’ as Part of Revival Plan, Unified Brand to Focus on Enhancing Digital Experience to Attract New Customers.

Vodafone is currently facing tax claims and interest totalling more than Rs 20,000 crore in India. Out of the total claims, Rs 14,200 crore is for acquiring Hutchison's stake. In 2007, Vodafone received notices from the India's tax authorities for allegedly failing to deduct withholding tax in the Hutchison deal.

The UK's telecom major challenged the government's decision in the Supreme Court in 2012. However, the Centre, through the Finance Act 2012, enacted a law to tax Vodafone retrospectively. On February 12, 2016, Vodafone received a notice to pay outstanding tax demand of Rs 22,100 crore.

(The above story first appeared on LatestLY on Sep 25, 2020 04:22 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).