ReutersBENGALURU: India's federal government said on Friday that it will study an international arbitration tribunal's ruling in favour of Vodafone Group Plc, ending one of the most high-profile disputes in the country involving a $2 billion tax claim.
An international arbitration tribunal in The Hague ruled that India's imposition of a tax liability on Vodafone, as well as interest and penalties, were in a breach of an investment treaty agreement between India and the Netherlands.
It also directed India to pay 4.3 million pounds ($5.47 million) to the company as compensation for its legal costs.
"The government will be studying the award and all its aspects carefully in consultation with our counsels," India's finance ministry said in a statement, adding that it will consider all options, including legal remedies.
An international arbitration tribunal in The Hague ruled that India's imposition of a tax liability on Vodafone, as well as interest and penalties, were in a breach of an investment treaty agreement between India and the Netherlands.
It also directed India to pay 4.3 million pounds ($5.47 million) to the company as compensation for its legal costs.
"The government will be studying the award and all its aspects carefully in consultation with our counsels," India's finance ministry said in a statement, adding that it will consider all options, including legal remedies.