The Indian government challenged an international arbitration court's earlier verdict in favor of Vodafone & filed an appeal in Singapore on Dec. 21.
The Indian government challenged an international arbitration court's earlier verdict in favor of Vodafone & filed an appeal in Singapore on Dec. 21.In September 2020, Vodafone had won a long-pending arbitration case against India's income tax department. An international arbitration tribunal in The Hague had ruled that the Indian government seeking ₹ 22,100 crores 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. India had ninety days to appeal the ruling. India had filed a petition in Singapore on Dec. 21, 2020, against Vodafone arbitration.
The dispute initially began when the Indian government amended the Finance Act in 2012. The authorities were given the power to tax any gain on the transfer of the share retrospectively. Due to the act, Vodafone was asked to pay a total of ₹ 22,100 crores in two tranches towards retrospective taxes on capital gains, including interest and penalty.