"The government can only go back to the Permanent Court of Arbitration on some technical point, but that will not serve any purpose," she said. The tax department felt the deal was designed to avoid capital gain tax in India and imposed a tax demand, which was rejected by the Supreme Court in 2012. India Business News  |  Indian Stock Market News  |  Bollywood Movies  |  Indian Cricket News  |  India News, A-I pilots warn of 'industrial action' over wage cut, ED attaches assets worth Rs 4,109 cr in ponzi scheme, Pelosi attempts to deny Trump nuclear codes, Trump says he's skipping Biden's inauguration, Nirav Modi's trial concludes, verdict likely on Feb 25, Indian economy to rebound with 8.9% growth in FY22. You are now subscribed to our newsletters. 3-min read New Delhi, Dec 24 (PTI) India has challenged in a Singapore court a verdict of an international arbitration tribunal … Click here to read the Mint ePaperMint is now on Telegram. In September, the Permanent Court of Arbitration located at The Hague had ruled that Vodafone won the case against India over a retrospective … It said Vodafone invested in India through its subsidiary in the Netherlands. On Thursday, it was reported that the government has filed an appeal at the Singapore seat of the permanent court of arbitration challenging the judgment in the Vodafone retrospective taxation case. The government had used a 2012 law that gave tax authorities the power to reopen past cases, to seek taxes from Vodafone and Cairn over alleged capital gains made several years ago. After proceedings lasting some 6 years, the tribunal seated in Singapore under the auspices of the Permanent Court of Arbitration, has held unanimously in an award dated 25 September 2020, that India was in breach of the treaty. India had 90 days or till December 24 to challenge the Vodafone award before a court in Singapore - which was the seat of the arbitration. To stop abuse and plug the loophole of such indirect transfer of Indian assets, the government in 2012 amended the law to make such transfers taxable in India, they said, adding Vodafone was slapped with a fresh demand which the firm contested through international arbitration. Since the Indian Arbitration Act obliges the government to implement a foreign tribunal award, Vodafone can ask for the same in case the award was challenged in Indian courts, she said. Senior advocate Harish Salve, appearing for Vodafone, said the telco will not pursue a second arbitration under the India-UK Bilateral Investment Promotion and Protection Agreement (Bipa) until the award published under the India-Netherlands Bipa is set aside. As per the … The appeal was filed on 21 December at a Singapore court. Your session has expired, please login again. Oops! It has appealed the decision by the Permanent Court of Arbitration in the Vodafone case. India had 90 days or till December 24 to challenge the Vodafone award before a court in Singapore - which was the seat of the arbitration. An international arbitration court had on September 25 rejected tax authorities' demand for Rs 22,100 crore in back taxes and penalties relating to the British telecom giant's 2007 acquisition of an Indian operator. Also Read | Inside the farmer disquiet at Delhi’s doorstep. Sources said the government believes that taxation is not covered under investment protection treaties with various countries and the law on taxation is a sovereign right of the country. The government recently discussed the Hague-based Permanent Court of Arbitration (PCA) award in the Vodafone tax dispute case at the highest … While the award has not been made public, media reports indicate that the tribunal found: The government, the sources said, is expected to challenge this ruling too given the size of the award. In September, Vodafone had won the long-pending arbitration case against India’s income tax (IT) department that demanded over ₹22,000 crore on a retrospective basis. The government is likely to challenge the arbitration award announced by the Permanent Court of Arbitration (PCA) in Hague, in the Vodafone tax dispute case. The dispute arose when the Indian government amended the Finance Act in 2012, where the power to retrospectively tax any gain on transfer of share was introduced. Vodafone then challenged India's amendment to the law, which allowed the country to retrospectively tax deals such as Vodafone Group's $10.9 billion acquisition of a 67% stake in Hutchison Essar in 2007. Looks like you have exceeded the limit to bookmark the image. The high court had heard a case related to the validity of the second arbitration initiated by Vodafone under the India-UK Bipa for the same retrospective tax demand. The Hague-based Permanent Court of Arbitration (PCA) had in September  granted an arbitration award to Vodafone in connection with the tax department's demand of Rs 22,100 crore. And, given that the damages in the Cairn matter are far more significant – over a $1 billion dollars, it is expected to appeal that as well. It'll just take a moment. Cairn Energy, which gave the country its biggest oil discovery, was in March 2015 slapped with a demand for Rs 10,247 crore tax on alleged capital gains it made when it in 2006 reorganised its India business before listing of the local unit. While the treaties are primarily aimed at protection of investments, the tax is levied on 'returns' earned by entities. Copyright © HT Digital Streams Limited All rights reserved. Log in to our website to save your bookmarks. The victory in the Permanent Court of Arbitration in The Hague may finally signal an end to … Two sources privy to the development said India had 90 days to file an appeal against the tribunal award, and the same was done in a Singapore court earlier this week. Vodafone Idea has refused to comment on the issue. It is under this treaty, that the Permanent Court of Arbitration in Hague had conducted hearings between the two sides. India has challenged in a Singapore court a verdict of an international arbitration tribunal that overturned its demand for Rs 22,100 crore in back taxes from Vodafone Group Plc, sources said on Thursday. Flipkart, Swiggy reject all allegations of tax evasion, Sebi bans Mountain View Developers and three people for six months, Jumbotail raises $14.2 million, completing its $25 million fund raise, Piramal Group claims its bid for DHFL highest and compliant with norms, Vodafone Group won a long-pending arbitration case against India’s income tax department over a, The Permanent Court of Arbitration in The Hague held that any attempt to enforce the tax demand would violate India's international legal obligations. The sum awarded to Cairn by the Permanent Court of Arbitration at The Hague is regarded in official circles in New Delhi as so large that the cash-strapped government has no option but to appeal. Both Vodafone and Cairn had filed their challenges to the government’s tax demands under bilateral investment treaties. under the India-UK Bilateral Investment Protection Agreement in the … Vodafone Group declined to comment on the issue. The Permanent Court of Arbitration located at The Hague has ruled that the conduct of India's tax department is in breach of fair and equitable treatment. Sources told CNBC-TV18 that the Law Ministry is in favour of the Government of India challenging the Rs 20,000 crore tax dispute in the Singapore High Court. Permanent Court of Arbitration in The Hague holds Indian tax authorities in breach of fair treatment doctrine. Join Mint channel in your Telegram and stay updated with the latest business news. In November, additional solicitor general Chetan Sharma, representing the Centre, had told the Delhi high court that the empowered committee of the cabinet was yet to meet and take a decision on whether to challenge the award and sought two weeks’ time. Sources said the Government of India's liability came to Rs 85 crore in legal cost. Vodafone International Holding (a Netherland company) had in February 2007 bought 100 per cent shares of Cayman Island-based company CGP Investments for $11.1 billion to indirectly get 67 per cent control of Hutchison Essar Ltd - an Indian company. Remove some to bookmark this image. The amendment also overruled a Supreme Court judgement of 2012 that went in Vodafone's favour. On September 25, the Permanent Court of Arbitration at the Hague had ruled that India’s retrospective demand of Rs 22,100 crore as capital gains and withholding tax imposed on Vodafone Group Plc for a 2007 deal was ‘in breach of the guarantee of fair and equitable treatment’. India had 90 days or till December 24 to challenge the Vodafone award before a court in Singapore - which was the seat of the arbitration. On 25 September, the Permanent Court of Arbitration in The Hague, the Netherlands, held that any attempt by India to enforce the tax demand on Vodafone would be a violation of the country’s international law obligations. In case you can’t find any email from our side, please check the spam folder. India has upped the ante against Vodafone by challenging an earlier award, by the Permanent Court of Arbitration at the Hague, that held that the retrospective legislation was in breach of the guarantee of fair and equitable treatment guaranteed under the Bilateral Investment Treaty. In the separate case of Cairn, India has been asked to pay with interest the value of shares it sold, the dividend it seized, and tax refunds it withheld to recover part of tax demand from the British firm. Vodafone Group won a long-pending arbitration case against India’s income tax department over a ₹ 22,000 crore retrospective tax demand The Permanent Court of … Vodafone Group Plc on Friday won a decade-long battle in the Permanent Court of Arbitration in The Hague against the Indian tax department’s demand of Rs 20,000 crore, stemming from its … The international tribunal ruled that the Indian IT department’s tax demand from Vodafone is in breach of the bilateral investment treaty (BIT) between India and The Netherlands. What happened at the Permanent Court of Arbitration was that the tribunal did not even get into the retrospective taxation amendment. ‘Vodafone’s arbitration win unlikely to trigger any fresh investments in Vi’ 27 Sep, 2020, 11.58 PM IST. Vodafone had challenged before the arbitration tribunal the demand for Rs 7,990 crore in capital gains taxes (Rs 22,100 crore after including interest and penalty) under the Netherlands-India Bilateral Investment Treaty (BIT). Vodafone wins Rs 20kcr tax arbitration against govt. 'Govt to study the arbitration case award in Vodafone … Finally, on May 7, 2018, the Delhi HC dismissed the plea of the Indian government seeking an anti-arbitration injunction against Vodafone from proceeding under the India-UK BIT arbitration. The government’s move comes a day after it lost the arbitration case to Cairn Energy over the retrospective levy of taxes and was asked to pay damages to the tune of $1.2 billion. Both Vodafone and Cairn had challenged the tax demands under bilateral investment protection treaties and initiated the arbitration. At the time, the Netherlands had a bilateral treaty with India, which lapsed in 2016. The Permanent Court of Arbitration ruled that India’s attempt to impose a retrospective withholding tax demand of US$5.5 billion (including penalties and interest) on Vodafone was in violation of India’s obligations under the India-Netherlands bilateral investment treaty. In May 2018, the Delhi High Court had allowed the second arbitration initiated by Vodafone Plc. The Permanent Court of Arbitration (PCA) at The Hague has ruled in favour of Vodafone with respect to the Indian government's retrospective tax claim of approximately USD 5.5 billion together with penalty and interest (Approximately Rupees 40,000 Crores in today's conversion rates) stemming from the company's acquisition of the Indian assets of Hutch back in 2007. (Bloomberg Photo: Dhiraj Singh) In a unanimous decision, the Permanent Court of Arbitration at The Hague on Friday ruled that India’s retrospective demand of Rs 22,100 crore as capital gains and withholding tax imposed on the British telecommunication company for a 2007 deal was “in breach of the guarantee of fair and equitable treatment”. On September 24, Hague-based Permanent Court of Arbitration (PCA) ruled in Vodafone's favour in the arbitration case against the India's retrospective tax demand of Rs 22,100 crore. 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. This appeal also sets the stage for the government to challenge the order of a three-member tribunal at the Permanent Court of Arbitration in The Hague that asked India to return $1.4 billion to British oil and gas company Cairn Energy plc. NEW DELHI: India on Thursday challenged the international arbitration court’s ruling in favour of Vodafone Plc in the retrospective tax case, according to news reports. As per the award, the government has to reimburse Vodafone 60 per cent of its legal costs and half of the 6,000-euros cost borne by Vodafone for appointing an arbitrator on the panel. In April 2014, Vodafone International Holdings initiated Arbitration Proceedings under the India – Netherlands Bilateral Investment Treaty. The demand pertained to Vodafone's $11-billion acquisition of 67 per cent stake in the mobile phone business owned by Hutchison Whampoa in 2007. The Permanent Court of Arbitration at The Hague had earlier ruled that the government imposing a tax liability on Vodafone is a breach of the investment treaty agreement between India and … Despite solid losses in the bilateral treaty cases under international arbitration brought by Vodafone Plc and Cairn Energy Plc the Indian government won’t give up. In September, an international arbitration court ruled that the Indian government seeking Rs 22,100 crore in taxes from Vodafone using retrospective legislation was in "breach of the guarantee of fair and equitable treatment" guaranteed under the bilateral investment protection pact between India and the Netherlands. 21 December at a permanent court of arbitration vodafone Court filed on 21 December at a Singapore Court now on.. 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