New rules for Vodafone retrospective tax settlement notified

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India Thursday notified fresh rules to facilitate settlement of the retrospective tax dispute with British telecom company Vodafone. The Central Board of Direct Taxes notified ‘ Relaxation of Validation( section 119 of the finance act) Rules prescribing the forms and conditions for the declaration to be filed by the company for setting its case. Vodafone’s … Read more

New York court pauses tax suit to allow Cairn to settle dispute with India

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A New York court has paused Energy’s pursuit of US assets of Air India for the recovery of USD 1.2 billion arbitral award, so as to allow the British firm to reach a settlement with the Indian government on the long drawn dispute. The New York district court delayed the tax suit to November 18, … Read more

View: Tax certainty is critical for attracting enough capital to grow at 7%-8%

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Hard as it is forming a view of the future, it is much harder acting on it and deploying capital, especially as businesses take many years to deliver returns. Think about someone who started a new restaurant in early 2020, or someone who expanded capacity in India in 2014 for producing equipment for coal-fired power … Read more

Views: Lessons from UNCTAD for India on how to avoid Vodafone, Cairn-like tax tussles

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The unanimous decision against India at the Permanent Court of Arbitration in Vodafone and Cairn Energy cases highlights the significance of the Fair and Equitable Treatment (FET) clause in bilateral investment treaties (BIT). In both these cases, countries guaranteed each other fair and equitable treatment, and arbitration in case of disputes. GoI, as part of … Read more