By - Nuttida Doungwirote* Indian Government has filed an appeal against a ruling of an international arbitration tribunal rendered on September 25th, 2020. The ruling states that India has breached “the guarantee of fair and equitable treatment” and therefore is obligated to reimburse Vodafone Group Plc for Rs 22,100 crore (£4,327,294.50) Background of the dispute In 2007, Hutchison Telecommunications International Limited, a Hong Kong entity (HTIL) sold its stock in Hutchison Essar Limited, an Indian company (HEL) to Vodafone International Holdings B.V., a Netherlands entity (Vodafone) Under Section 195 of the Income Tax Act 1961, any person paying to a non-resident or a foreign company is obligated to deduct taxes at source. Vodafone, being a payer to a Hong Kong entity, must therefore comply with Section 195 of the Income Tax Act 1961. Vodafone did not comply and was sued by the Indian revenue authorities. However, the Supreme Court of India held that stocks were excluded from t...
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