$2 billion tax dispute: Vodafone wins international arbitration against India

NEW DELHI: Vodafone Group Plc has won an international arbitration case against the Indian government in a $2 billion retrospective tax dispute, according to two sources with direct knowledge of the matter.
The tribunal ruled that the Indian government’s imposition of a tax liability on Vodafone is in breach of the investment treaty agreement between India and the Netherlands, one of the sources said.
Earlier this month, the Supreme Court gave mobile carriers 10 years to settle the government (adjusted gross revenue) dues. The top court set a deadline of March 31, 2031 for the companies to pay the amount in annual instalments.
It directed the companies to pay the first instalment of 10 per cent of dues by March 31, 2021.
The total dues on telecom companies were around Rs 1.69 lakh crore in October 2019 when the apex court passed the verdict in favour of the Centre.
AGR dues on Vodafone Idea are around Rs 54,754 crore.

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