Govt looking at ways to settle Vodafone retrospective taxation dispute

New Delhi: The Centre will soon take a decision on further course of action including considering the option of bringing a new law to withdraw the 2012 amendment to settle its tax dispute with Vodafone after the Permanent Court of Arbitration (PCA) at The Hague ruled in favour of the company.

The court ruled that the conduct of India’s tax department is in breach of “fair and equitable” treatment, thereby rendering Vodafone not liable to pay a retrospective tax demand of more than Rs 20,000 crore raised by Indian authorities.

Sources said that the Finance Ministry is taking a detailed view on its tax dispute with Vodafone and is looking at all options including nullifying the tax demand by introducing a law that withdraws the controversial 2012 amendment which made companies liable to pay tax retrospectively even on gains made in concluded deals.