Vodafone to continue with arbitration on retro tax

Vodafone Thursday said it will continue with the ongoing international arbitration to resolve the Rs.20,000-crore tax dispute against India.

“We note the Finance Minister’s announcement that existing cases arising from the 2012 retrospective tax law should follow the lawful process in which they are currently being adjudicated. Vodafone will, therefore, continue the process of international arbitration initiated under the India-Netherlands Bilateral Investment Treaty,” the company said in a statement.

Earlier in the day while presenting his maiden Budget, Finance Minister Arun Jaitley said that the government will not ordinarily bring about any change retrospectively which creates a fresh liability.

“Hon’ble Members are aware that consequent upon certain retrospective amendments to the Income Tax Act 1961 undertaken through the Finance Act 2012, a few cases have come up in various courts and other legal fora. These cases are at different stages of pendency and will naturally reach their logical conclusion,” Jaitley said.
(IANS)