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Vodafone wins tax dues case against India at Hague
Vodafone has won an arbitration against India over income tax dues. The Permanent Court of Arbitration in Hague said India should pay Rs 40 crore to the company as partial compensation for its legal costs. In another case, the Supreme Court had allowed 10 years time to telecom an other firms to pay Government dues.

NEW DELHI, Sept 26: Telecom giant Vodafone on Friday won a long-pending arbitration against India over income tax dues. The Permanent Court of Arbitration in Hague ruled that income tax authorities had violated the provisions of the Bilateral Investment Treaty with the Netherlands by amending the law retrospectively to demand over Rs 20,000 crore.

The tax dispute involving Rs 12,000 crore in interest and RS 7,900 crore in penalties is consequent upon Vodafone's acquisition of the Indian mobile assets from Hutchison in 2007. The Government said the company was liable to pay tax on acquisition. The Supreme Court had ruled against the Centre. The Government then came with a retrospective amendment trying to recover the tax.

The Hague court said India should pay Rs 40 crore to the company as partial compensation for its legal costs.

In another case, the Supreme Court had allowed 10 years time to telecom firms to pay Ggovernment dues.

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