The UPA government decided to impose capital gains tax retrospectively on some companies, such as Cairn and telecoms operator Vodafone Plc.
India's retrospective tax was introduced in 2012 and made any capital gains resulting from the transfer of shares from a foreign entity whose assets were located in India taxable from 1962.
An international arbitration tribunal in The Hague last year ruled that India’s imposition of a tax liability on Vodafone, as well as interest and penalties, breached of an investment treaty agreement between India and the Netherlands. Listen and find out more!
