Vodafone issues notice to Indian government over violation of Investment Protection Treaty

Vodafone has issued notice to the Indian government under Bilateral Investment Protection Treaty over tax issue between India and the Netherlands. The Dutch subsidiary Vodafone International Holdings BV today served a notice of dispute on the Indian government regarding proposals in the Finance Bill 2012 which it claimed, violated the international legal protections granted to Vodafone and other international investors in India.

In the Budget, the government has announced a proposal to amend the Income Tax Act to bring overseas deals under tax net after the Supreme Court held that the UK firm was not liable to pay the 11,000 crore rupees in taxes.