wordpress blog stats
Connect with us

Hi, what are you looking for?

Vodafone Serves Notice To Indian Govt Regarding Proposed Tax Legislation

It looks like Vodafone’s tussle with the Indian government is far from over. The British telecom operator has today announced that it has served the Indian Government a ‘Notice of Dispute’ regarding India’s proposal to retrospectively tax overseas business deals which was introduced by India’s finance minister Pranab Mukherjee during the Union Budget 2012, last month.

The notice which was served by group’s Dutch subsidiary Vodafone International Holdings BV (VIHBV), states that if the retrospective tax bill was passed as a legislation, it could pose serious consequences for Vodafone as well as other Indian and international businesses and would amount to a breach of the Indian government’s obligations under the Bilateral Investment Treaty (BIT) between India and the Netherlands which mandates the government to provide fair treatment to investors.

In a press statement, Vodafone asked the Indian government to either drop the retrospective aspects of the proposed tax legislation or suitably to amend it so as to reach an amicable solution with them, failing which Vodafone will take necessary steps to protect its shareholders’ interests, which includes initiating an investment treaty arbitration case under the BIT against the Indian government.

Earlier this month, reports had indicated that the India’s Income Tax Department is about to issue a ‘demand notice’ to Vodafone, showing the government’s intentions to continue pursuing the tax case. It had stated that a clause in the Finance Bill, known as the validation clause, will be used to revive tax claims which were previously rejected by the Supreme Court earlier this year and the notice will be sent to Vodafone, following the passing of Finance Bill in Indian parliament which is expected to happen in early May 2012.


Advertisement. Scroll to continue reading.

– Vodafone Wins Indian Tax Case; Timeline & Potential Aftermatch
SC Rejects Govt’s Review Petition In Tax Case; Vodafone Gets Refund
Vodafone To Receive Demand Notice From IT Department: Report

Written By

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



The US and other countries' retreat from a laissez-faire approach to regulating markets presents India with a rare opportunity.


When news that Walmart would soon accept cryptocurrency turned out to be fake, it also became a teachable moment.


The DSCI's guidelines are patient-centric and act as a data privacy roadmap for healthcare service providers.


In this excerpt from the book, the authors focus on personal data and autocracies. One in particular – Russia.  Autocracies always prioritize information control...


By Jai Vipra, Senior Resident Fellow at Vidhi Centre for Legal Policy The use of new technology, including facial recognition technology (FRT) by police...

You May Also Like


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ