Vodafone wins arbitration against India over Rs 20,000 cr retrospective tax dispute
4 years, 2 months ago

Vodafone wins arbitration against India over Rs 20,000 cr retrospective tax dispute

India TV News  

Vodafone has won the arbitration case against Government of India over Rs 20,000 crore retrospective tax dispute. The Government of India's liability will be restricted to about Rs 75 crore -- Rs 30 crore in cost and another Rs 45 crore in tax refund, sources with direct knowledge of the matter said. Tax authorities had in September 2007 served notice to Vodafone International Holdings BV for its alleged failure to deduct withholding tax from consideration paid to the Hutchison Telecommunications International Ltd. Vodafone challenged this in the Supreme Court, which in January 2012 set it aside, saying the transaction was not taxable in India and so the company had no obligation to withhold tax. Besides Vodafone, the Indian government also used the retrospective tax legislation to seek Rs 10,247 crore from British oil explorer Cairn Energy Plc over a 2006 reorganisation of its Indian businesses.

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History of this topic

Taxing drama: The Hindu Editorial on retroactive tax disputes
2 years, 10 months ago

Taxing drama: The Hindu Editorial on retroactive tax disputes

The Hindu  

In what should be the last act of a long and winding tax dispute drama, British firm Cairn Energy has said it has concluded all steps prescribed by the Indian government in order to be eligible for the refund of a contentious retroactive tax levy. The original target for this move, that has sharply dented India’s credibility, was Vodafone, which …

Cairn ‘fulfils’ retro tax repeal steps, awaits ₹7,900 crore refund
2 years, 10 months ago

Cairn ‘fulfils’ retro tax repeal steps, awaits ₹7,900 crore refund

The Hindu  

U.K.’s Cairn Energy on Tuesday said it has complied with all rules of the retro tax repeal law to now become eligible for about ₹7,900 crore refund of taxes that were collected from it to enforce a retrospective tax demand. As part of the settlement reached with the government in the seven-year-old dispute over the levy of back taxes, the …

India’s poor compliance with investment awards
2 years, 11 months ago

India’s poor compliance with investment awards

Hindustan Times  

The roller-coaster ride of the interminable Devas saga continues. Yet, India continued to brazen it out — launching an investigation against Devas, leading to an order to liquidate the company by the National Company Law Tribunal, and refusing to comply with the BIT awards. The disputes that India lost include cases brought by leading global corporations such as Vodafone, Deutsche …

Rollback Of Retro Tax: An Olive Branch To Foreign Investors
3 years, 4 months ago

Rollback Of Retro Tax: An Olive Branch To Foreign Investors

Live Law  

In January 2012, the Supreme Court of India gave relief to foreign investors through its landmark decision in Vodafone International Holdings BV v. Union of India. The tax authorities contended that the transfer of shares of the Cayman Island company led to the transfer of a capital asset situated in India and income from such transfer was taxable in India. …

Explained | Why is retrospective tax being scrapped?
3 years, 4 months ago

Explained | Why is retrospective tax being scrapped?

The Hindu  

The story so far: On Thursday, Finance Minister Nirmala Sitharaman introduced the Taxation Laws Bill in the Lok Sabha to nullify the tax clause provision that allows the government to levy taxes retrospectively. In January 2012, India’s Supreme Court backed Vodafone, ruling that indirect transfer of shares to a non-Indian company would not attract tax in India. Separately, in 2006-07, …

Scrapping Retrospective Tax a Welcome Move, But Why Did It Come So Late?
3 years, 4 months ago

Scrapping Retrospective Tax a Welcome Move, But Why Did It Come So Late?

The Quint  

In a big move to end "tax terror", Finance Minister Nirmala Sitharaman introduced the Taxation Laws Amendment Bill in the Lok Sabha to scrap the draconian retrospective tax amendment of 2012 that had made indirect transfer of Indian assets prior to 2012 taxable. The government said, "The Bill proposes to amend the Income Tax Act, 1961, to provide that no …

Centre introduces Bill in Lok Sabha to withdraw retrospective tax demands on Cairn, Vodafone
3 years, 4 months ago

Centre introduces Bill in Lok Sabha to withdraw retrospective tax demands on Cairn, Vodafone

Firstpost  

New Delhi: In a bid to bury the ghost of retrospective taxation, the government on Thursday brought a Bill in the Lok Sabha to withdraw all back tax demands on companies such as Cairn Energy and Vodafone and said it will refund the money collected to enforce such levies. Finance Minister Nirmala Sitharaman introduced ‘The Taxation Laws Bill, 2021’ in …

Centre moves to redact retrospective tax law
3 years, 4 months ago

Centre moves to redact retrospective tax law

The Hindu  

The government on Thursday took the first step towards doing away with the contentious retrospective tax law of 2012, which was used to raise large tax demands on foreign investors like Vodafone and Cairn Energy, and blamed for vitiating India’s investment climate — less than a month after Cairn Energy secured an order from a French court to freeze India’s …

Cairn Energy dispute | Vigorously defending case against arbitration order, says govt.
3 years, 7 months ago

Cairn Energy dispute | Vigorously defending case against arbitration order, says govt.

The Hindu  

The government is “vigorously defending” its case against an international arbitration order asking it to refund $1.2 billion to Cairn Energy over a retrospective tax dispute, the Finance Ministry said on Sunday, asserting that India had never “agreed to arbitrate” a national tax dispute. “The government has raised several arguments that warrant setting aside of the award including but not …

Why Cairn Energy's move to attach Air India's assets in $1.2 billion tax case has the Centre in a fix
3 years, 7 months ago

Why Cairn Energy's move to attach Air India's assets in $1.2 billion tax case has the Centre in a fix

India Today  

The recent move by UK’s Cairn Energy Plc--threatening to seize the assets of national carrier Air India to enforce a $1.2 billion arbitration award the former had won against the Indian government last year--has proved to be extremely embarrassing for the Centre. Cairn Energy has moved the US district court for the Southern District of New York, seeking to make …

The Hindu Explains | How is the Indian government planning to respond to the Cairn tax ruling?
3 years, 9 months ago

The Hindu Explains | How is the Indian government planning to respond to the Cairn tax ruling?

The Hindu  

The story so far: In December 2020, a three-member tribunal at the Permanent Court of Arbitration in the Netherlands ruled against India in its long-running tax dispute with the U.K.-based oil and gas company Cairn Energy Plc and a subsidiary, Cairn UK Holdings Ltd. The dispute started in early 2014 when Indian tax authorities started questioning Cairn Energy requesting information …

India filing appeal against Cairn arbitration award, say sources
3 years, 9 months ago

India filing appeal against Cairn arbitration award, say sources

The Hindu  

India is in the process of filing an appeal against an arbitration panel ruling asking it to return $1.2 billion to British oil firm Cairn Energy Plc, sources said on Wednesday. India is in the process of filing an appeal in the Cairn arbitration award case, they said, adding it was well within India’s sovereign powers to redress the situation …

India will file appeal in Cairn arbitration case
3 years, 9 months ago

India will file appeal in Cairn arbitration case

Live Mint  

India will file an appeal in the Cairn arbitration award case relating to the tax dispute concerning the British oil firm, sources said. They said Cairn Energy set up "a tax abusive structure" and did not pay taxes anywhere in the world on the gains that it made in India. However, India is open for a constructive settlement of tax …

Despite arbitration tug of war, mutual settlement is key
3 years, 9 months ago

Despite arbitration tug of war, mutual settlement is key

The Hindu  

For the Indian foreign direct investment landscape, the year 2020 may have been a welcome bag of enhanced equity inflows, bold policy changes and billion-dollar milestones. However, international decisions against Government of India in the cases of Cairn Energy and Vodafone in the final quarter of 2020, and the decision by India to appeal against these awards, have served to …

Cairn files case in U.S. to push India to pay $1.2 bn award
3 years, 10 months ago

Cairn files case in U.S. to push India to pay $1.2 bn award

The Hindu  

Cairn Energy has filed a case in a U.S. district court to enforce a $1.2 billion arbitration award it won in a tax dispute against India, a court document showed, ratcheting up pressure on the government to pay its dues. The case marked a first step in Cairn’s efforts towards recovering its dues, potentially by seizing Indian assets, if the …

Voda Tax Case: India Files Application in Singapore High Court Against Arbitration Panel Verdict
3 years, 10 months ago

Voda Tax Case: India Files Application in Singapore High Court Against Arbitration Panel Verdict

News 18  

New Delhi: India has challenged in the Singapore High Court an international arbitration tribunal's verdict that overturned its demand for Rs 22,100 crore in back taxes from Vodafone Group Plc, and the order passed in Cairn Group's case is under consideration of the government, Parliament was informed on Monday. An international arbitration court had in September last year rejected tax …

India’s retrospective taxation blunder is still extracting heavy costs
3 years, 11 months ago

India’s retrospective taxation blunder is still extracting heavy costs

Hindustan Times  

A retroactive law is truly a monstrosity. The tribunal reasoned that India’s decision to retroactively apply the law, without a specific justification, created a new tax burden on a transaction that was not taxable at the time it was carried out, ie. in 2006 In 2012, India amended the Income Tax Act retroactively to overturn the Supreme Court’s decision favouring …

Hague court cites statements by Modi, Jaitley to overturn Rs 10k crore tax demand from Cairn
3 years, 11 months ago

Hague court cites statements by Modi, Jaitley to overturn Rs 10k crore tax demand from Cairn

Firstpost  

In 2016, the prime minister was quoted by the Financial Times as saying that the government “will not resort to retrospective taxation; we are making our tax regime transparent, stable and predictable” New Delhi: A three-member tribunal at the Permanent Court of Arbitration in The Hague cited statements by Prime Minister Narendra Modi and other ministers pledging not to use …

In Cairn Judgement Against India, Hague Court Cites PM Modi's Statement Pledging Not to Use Retrospective Tax
3 years, 11 months ago

In Cairn Judgement Against India, Hague Court Cites PM Modi's Statement Pledging Not to Use Retrospective Tax

News 18  

A three-member tribunal at the Permanent Court of Arbitration in The Hague cited statements by Prime Minister Narendra Modi and other ministers pledging not to use retrospective taxation to overturn a Rs 10,247 crore tax demand on British oil and gas company Cairn Energy Plc. It ruled that the 2006 reorganisation of Cairn Energy’s India business prior to listing on …

Govt Challenges Vodafone Arbitration Ruling in Singapore Court: Report
3 years, 11 months ago

Govt Challenges Vodafone Arbitration Ruling in Singapore Court: Report

News 18  

India has challenged in Singapore an international arbitration court’s verdict against it over a $2 billion tax claim involving Vodafone Group Plc, a senior government official told Reuters on Thursday on condition of anonymity. British telecom giant Vodafone Group plc in September this year had won an arbitration against the Indian government over a demand for Rs 22,100 crore in …

Setback For Government As Cairn Energy Wins Arbitration Ruling In High-Profile Tax Dispute - What Is The Case?
4 years ago

Setback For Government As Cairn Energy Wins Arbitration Ruling In High-Profile Tax Dispute - What Is The Case?

ABP News  

Elon Musk Reveals Apple CEO Refused Talks To Acquire Tesla At $60 Billion Cairn Energy has won an international arbitration case against the Indian government over a tax dispute that made international investors nervous over retrospective tax claims on companies. The tribunal ruled unanimously that India had breached its obligations to Cairn under the UK-India Bilateral Investment Treaty and awarded …

Cairn Energy wins tax arbitration against India: What the case is all about
4 years ago

Cairn Energy wins tax arbitration against India: What the case is all about

Business Standard  

India lost the Cairn arbitration case.The case was related to the retrospective tax amendment law and the verdict came late night Tuesday. Cairn received a notice from the income tax department in January 2014, raising a preliminary assessment of Rs 10,247 crore tax liability relating to the group reorganisation done in 2006, when Cairn UK transfered about 10 per cent …

Setback for India as govt loses retrospective tax dispute case against energy giant Cairn
4 years ago

Setback for India as govt loses retrospective tax dispute case against energy giant Cairn

India Today  

In what seems to be another setback for India after Vodafone, energy giant Cairn has won an international arbitration against the government over a retrospective tax dispute, said the company on Wednesday. A three-member tribunal, comprising a judge appointed by the Indian government, ruled that India’s claim of Rs 10,247 crore in past taxes over a period of 2006-07 internal …

Delhi High Court Says It Will Pass Its Order On Centre's Appeal Against Vodafone Grp Plc
4 years ago

Delhi High Court Says It Will Pass Its Order On Centre's Appeal Against Vodafone Grp Plc

Live Law  

A Division Bench of Justice Rajiv Sahai Endlaw and Justice Asha Menon today said it would pass its order on an appeal by the Centre to restrain Vodafone Group Plc from initiating second arbitration proceedings under the India-UK Bilateral Protection Agreement, after the Centre asked the court to defer the appeal sine die, refusing to make a statement on whether …

India Has Time Till Dec-end to Appeal Against Vodafone Arbitration Award
4 years, 1 month ago

India Has Time Till Dec-end to Appeal Against Vodafone Arbitration Award

News 18  

The Indian government has time till the last week of December to appeal against the verdict of an arbitration panel that scrapped levy of Rs 22,100 crore tax on the UK-based telecom firm Vodafone Group Plc using a retrospective law. Finance Secretary Ajay Bhushan Pandey, refusing to be drawn into discussion on former Finance Minister Arun Jaitley's promise to honour …

Finance Ministry Denies Reports Of AG Not Favouring Appeal Against Vodafone Award; Says 'All Options Under Examination'
4 years, 2 months ago

Finance Ministry Denies Reports Of AG Not Favouring Appeal Against Vodafone Award; Says 'All Options Under Examination'

Live Law  

The Union Ministry of Finance has denied reports of the Attorney General for India not favouring the filing of appeal against the international arbitration award in the Vodafone case.The Ministry termed such reports reports "speculative", "totally incorrect" and "without any factual basis". The Union Ministry of Finance has denied reports of the Attorney General for India not favouring the filing …

Salutary lesson: The Hindu Editorial on the Vodafone case
4 years, 2 months ago

Salutary lesson: The Hindu Editorial on the Vodafone case

The Hindu  

Vodafone Group Plc has won yet another round in its 13-year-long battle with India’s tax authorities. On Friday, an i nternational arbitration tribunal ruled that the Indian government’s efforts to claim more than ₹20,000 crore in tax from Vodafone using retrospective legislation was in clear breach of the ‘fair and equitable treatment’ protections afforded under Article 4 of the Bilateral …

Vodafone wins arbitration against India in ₹20,000 crore tax case
4 years, 2 months ago

Vodafone wins arbitration against India in ₹20,000 crore tax case

Op India  

The Union Government has said that it is studying ruling by the Permanent Court of Arbitration in The Hague, turning down the retrospective tax demand of ₹20,000 crore made to Vodafone by Indian tax authorities. After such consultations, the Government will consider all options and take a decision on further course of action including legal remedies before appropriate fora.” Earlier …

Vodafone Idea Shares Jump Nearly 14 Percent after Arbitration Win, Market Valuation Zooms Rs 3,563.86 Crore
4 years, 2 months ago

Vodafone Idea Shares Jump Nearly 14 Percent after Arbitration Win, Market Valuation Zooms Rs 3,563.86 Crore

News 18  

Shares of Vodafone Idea Ltd zoomed nearly 14 per cent on Friday after Vodafone won the arbitration case against India over Rs 20,000 crore retrospective tax dispute. The company's market valuation rose by Rs 3,563.86 crore to Rs 29,769.86 crore on the BSE. Vodafone has won the arbitration against the Indian government over a demand for Rs 22,100 crore in …

Vodafone Wins Rs 20,000 Crore Retrospective Tax Case Against India Govt In International Arbitration
4 years, 2 months ago

Vodafone Wins Rs 20,000 Crore Retrospective Tax Case Against India Govt In International Arbitration

Live Law  

The Vodafone Group has won an international arbitration case against the Indian government in a retrospective tax dispute of over Rs 20,000 crores, reported the Reuters.The Permanent Court of Arbitration at the Hague ruled that the Indian government's tax demand on Vodafone is in breach of the investment treaty agreement between India and the Netherlands.The issue relates to the tax …

Vodafone Wins Arbitration against India in Rs 22,100 Cr Retrospective Tax Dispute; Govt to Study Award
4 years, 2 months ago

Vodafone Wins Arbitration against India in Rs 22,100 Cr Retrospective Tax Dispute; Govt to Study Award

News 18  

British telecom giant Vodafone Group plc on Friday won an arbitration against the Indian government over a demand for Rs 22,100 crore in taxes using retrospective legislation. “There’s a wrong impression that the government will have to return Rs 20,000 crore because of award in arbitration case invoked by Vodafone International Holding BV. Tax authorities had in September 2007 served …

Vodafone wins international arbitration against India in ₹14,200-crore tax dispute case
4 years, 2 months ago

Vodafone wins international arbitration against India in ₹14,200-crore tax dispute case

The Hindu  

Vodafone Group Plc said on Friday that it had won an international arbitration case against the Indian government, ending one of the most high-profile disputes in the country involving a $2 billion tax claim. An international arbitration tribunal in The Hague ruled that India’s imposition of a tax liability on Vodafone, as well as interest and penalties, were in a …

Vodafone wins international arbitration against India in Rs 20,000 crore tax dispute case
4 years, 2 months ago

Vodafone wins international arbitration against India in Rs 20,000 crore tax dispute case

India Today  

Vodafone Group Plc said on Friday it had won an international arbitration case against the Indian government, ending one of the most high-profile disputes in the country involving a Rs 20,000 crore n tax claim. An international arbitration tribunal in The Hague ruled that India’s imposition of tax liability on Vodafone, as well as interest and penalties, were in a …

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