InvestorQ : Is the Indian government planning to move the court against the exemption given to Vodafone from the capital gains tax payment?
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Is the Indian government planning to move the court against the exemption given to Vodafone from the capital gains tax payment?

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Mary Joseph answered.
3 months ago
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As of now, the government has sought time from the Delhi High Court to challenge the award of the international arbitration tribunal exempting Vodafone from paying Rs.22,100 crore as retrospective tax.

As per the extant rules, the Indian government can either accept the decision of the arbitrator or take up the matter legally. Government wants to make an informed decision eventually. Harish Salve is representing Vodafone in this case.

Vodafone had initiated arbitration proceedings under the India-UK and India-Netherlands Bilateral Party Agreement or BIPA, accusing the government of breaching the agreement. BIPA deals are governed by international laws and Indian government being party to BIPA cannot object to such legal recourse. This could be an interesting precedent for India.

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