India has examined in Singapore an worldwide arbitration court’s decision towards it over a $2 billion tax assert concerning Vodafone Team Plc. The gov had dropped an international arbitration case versus Vodafone in September more than a $2 billion retrospective tax dispute.
“The telco will not pursue a second arbitration under the India-UK Bilateral Investment Promotion and Protection Agreement until the award published under the India-Netherlands Bipa is set aside,” senior advocate Harish Salve, appearing for Vodafone.
Vodafone had registered its case under the Netherlands-India Bilateral Investment Treaty, while Cairn’s dispute was in relation to the UK-India Investment Treaty. The conflict arose when the Indian government revised the Finance Act in 2012, where the power to retrospectively tax any gain on transfer of share was introduced. Following the amendment, Vodafone was asked to pay a total of ?22,100 crore, in two tranches, in retrospective taxes on capital gains, including interest and penalty.