India has challenged in a Singapore court a verdict of an international arbitration tribunal that overturned its demand for Rs 22,100 crore in back taxes from Vodafone Group Plc, sources said on Thursday. An international arbitration court had on September 25 rejected tax authorities' demand for Rs 22,100 crore in back taxes and penalties relating to the British telecom giant's 2007 acquisition of an Indian operator. Two sources privy to the development said India had 90 days to file an appeal against the tribunal award, and the same was done in a Singapore court earlier this week.
The government may be waiting for the outcome of an arbitration initiated against its levy of Rs 10,247 crore retrospective tax on UK's Cairn Energy Plc before deciding on appealing against losing a tax case against Vodafone Group, sources said. An international arbitral tribunal is expected to give a decree within next few days on Cairn Energy Plc's challenge to the Indian government seeking Rs 10,247 crore in retrospective taxes. If the arbitration award in the Cairn cases goes against India, the government has to pay the British firm over Rs 7,600 crore to reverse the dividend and tax refund it had ceased and shares it sold to recover part of the tax demand.
Referring to Canadian Prime Minister Stephen Harper's visit to India in November last year, Chidambaram said that India and Canada have longstanding bilateral relations, built upon shared traditions of democracy, pluralism and strong interpersonal connections with an Indian diaspora of more than one million in Canada.
The government on Thursday brought a bill in the Lok Sabha to withdraw all back tax demands on companies such as Cairn Energy and Vodafone and said it will refund the money collected to enforce such levies.
British telecom giant Vodafone Group plc on Friday won an arbitration against the Indian government over a demand for Rs 22,100 crore in taxes using retrospective legislation.
AG is of the view that there is no point in dragging the matter further when it has already been "struck down" by one international forum, and also by the top Indian court.
Observing that the strategic partnership between India and South Africa has gradually taken shape, the two countries on Friday agreed to give a boost to economic cooperation
The two parties -- the Centre and Vodafone -- have sought a few more weeks to decide on the matter.
A senior company executive said the company waited for seven years for the verdict and its shareholders needed to know when it would be concluded.
The government, however, amended the tax laws with retrospective effect to undo the Supreme Court judgement and claim taxes.
Recently, the government had appointed former Chief Justice of India R C Lahoti as arbitrator in the tax dispute case.
The size of bilateral trade is only $6 billion a year.
The manner in which India has allowed the rule of law to be subverted for over eight years is tragic, notes former additional solicitor general of India Bishwajit Bhattacharyya.
The Supreme Court had ruled in Vodafone's favour in 2012.
A bench headed by Justice H L Dattu, however, allowed the petitioner, former Additional Solicitor General Bishwajit Bhattacharyya, to file fresh petition with all the relevant documents stating what action Centre has so far been taken on the issue.
Senior advocate Harish Salve, appearing for the telecom major, informed Justice Manmohan that the company in its response to the high court's August 22 notice has said it is not acceding to jurisdiction of the Indian courts in the matter.
Public purpose is not defined in any treaty that India has signed.
Modi is the first Indian Prime Minister to attend Davos meeting in about 20 years since H D Deve Gowda in 1997.
TDSAT had stated no amount was payable till resolution of the disputes.
PM promised a tax regime that is predictable and competitive
The 0.5 per cent Krishi Kalyan Cess (KKC) on all services increases the total tax chargeable on services to 15 per cent, making it expensive to dine out or travel.
Winding up his visit to Canada, Prime Minister Narendra Modi said it was a historic trip that will herald a new era of cooperation between the two countries.
Prime Minister Narendra Modi's opinion piece in Canada's The Globe and Mail focuses on commercial cooperation in the civil nuclear energy sector.
The justice delivery system is struggling to cope, creaking at the joints and bursting at the seams. Indian courts have to deal with about 30 million cases with a judicial strength of just about 19,000 judges.
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