Vodafone wins international arbitration against India in $2 billion tax dispute case

Telecom company Vodafone has wins the international arbitration case by defeating the Government of India in the Rs 20,000 crore tax dispute case. The company was told on Friday that it had won against the Government of India in an important case involving 12,000 crore dues and 7,900 crore fine in an international court in Singapore.

In 2016, Vodafone filed a petition against the Government of India with the International Arbitration Tribunal, the International Arbitration Tribunal of Singapore. The controversy started over the license fee and retroactive tax claim on the use of airwaves.

The tribunal has said in its decision that imposition of tax liability on Vodafone by the Indian government is a violation of the investment treaty agreement between India and the Netherlands.

Before that, Vodafone, the top company in India’s telecom sector, got some relief from the Supreme Court in AGR dues too. The court has given Vodafone 10 years to repay the government dues.

However, the company still has to pay 3-5 per cent of its adjusted AGR dues to the Department of Telecom as a usage fee for airwaves and 8 per cent as license fee. The company has long disputed the definition of AGR, but last year the Supreme Court took the side of the government and said that all kind of revenue will be included in the AGR.

By Priya Kumari