AFPNew Delhi: India’s loss in an international arbitration case against Vodafone Group on Friday over a retrospective tax demand on its $11.2-billion acquisition of Hutchison Essar's telecom business in 2007 could queer the government’s pitch in other high-profile cases currently under arbitration, experts say.
“The award will have immense persuasive value for all other tax cases that are going on, but the Indian government is likely to consider each case differently based on facts,” said Ravi Raghavan, tax counsel at Majumdar & Partners.
One of the prominent cases under international arbitration in-volving the retrospective tax amendment of 2012 is with Cairn Energy and Vedanta Resources. Kumarmanglam Vijay, partner at J Sagar Associates, said Vodafone win at the Permanent Court of Arbitration in The Hague “may cause other similarly placed companies to seek arbitral reliefs”. He said the space is likely to witness further action.
The government is evaluating whether to challenge the international tribunal award. "Government will consider all options and take a decision on further course of action including legal remedies before appropriate fora," it said in a statement on Friday.
“The award will have immense persuasive value for all other tax cases that are going on, but the Indian government is likely to consider each case differently based on facts,” said Ravi Raghavan, tax counsel at Majumdar & Partners.
One of the prominent cases under international arbitration in-volving the retrospective tax amendment of 2012 is with Cairn Energy and Vedanta Resources. Kumarmanglam Vijay, partner at J Sagar Associates, said Vodafone win at the Permanent Court of Arbitration in The Hague “may cause other similarly placed companies to seek arbitral reliefs”. He said the space is likely to witness further action.
The government is evaluating whether to challenge the international tribunal award. "Government will consider all options and take a decision on further course of action including legal remedies before appropriate fora," it said in a statement on Friday.