Vodafone wins crucial case against India over ₹20,000 cr tax dispute

The court ruled that India must pay $5.47 million to the telco as partial compensation for legal costs

Vodafone
The international court in The Hague had ruled that the conduct of Indian tax department is in breach of fair and equitable treatment | Photo: iStock

Telecom giant Vodafone on Friday (September 25) won an arbitration case over ₹20,000 crore retrospective tax dispute against the Indian government in an international court, sources said.

The Permanent Court of Arbitration at The Hague ruled that the conduct of the Indian tax department is in breach of fair and equitable treatment. Vodafone has won the arbitration against India on the issue of retrospective tax case of ₹20,000 crore, they said.

Besides, the arbitration tribunal also ruled that India must pay $5.47 million to the telco as partial compensation for its legal costs, reports said quoting sources.

The tax dispute had arisen after the telecom major’s acquisition of the Indian assets from Hutchison Whampoa in 2017, reported Reuters. The Indian government demanded taxes on the acquisition, but the company challenged the demands in court.

The telecom major had even won the case in the Supreme Court of India in 2012 but the government then changed the rules in its favour. In 2014, the company began arbitration proceedings against the government.

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