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Vodafone Idea share zooms 15% after parent wins arbitration against govt in Rs 20K-crore retro tax case

Vodafone Idea share gained up to 14.91% to  Rs 10.48 toward the end of session today against previous close of Rs 9.12 on BSE

twitter-logoBusinessToday.In | September 25, 2020 | Updated 17:08 IST
Vodafone Idea share zooms 15% after parent wins arbitration against govt in Rs 20-K crore retro tax case
Vodafone Idea share stands higher than higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages

Share price of Vodafone Idea rose as much as 15% today amid reports that the telecom operator's British parent, Vodafone Group Plc won an international arbitration case against the Indian government. Vodafone Idea share gained up to 14.91% to  Rs 10.48 toward the end of session today against previous close of Rs 9.12 on BSE.

Vodafone Idea share stands higher than higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. Later, the share closed 13.60% higher at Rs 10.36 on BSE.

The stock has gained after 7 days of consecutive fall. The share opened with a gain of 2.52%  at Rs 9.35 today.

The telecom stock trades 4.1% away from 52 week high of Rs 13.45

Total 13 crore shares changed hands amounting to turnover of Rs 128 crore on BSE.

Market cap of the firm climbed to Rs 29,769 crore.

In one year, the share has gained 94.74% and risen 68.18% since the beginning of this year. In a month, the stock has gained 14.86% but fallen 8% in a week.

The government had made  retrospective tax demand of Rs 20,000 crore from Vodafone .

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The International Court of Justice (ICJ) ruled that the Income-Tax department's conduct was in breach of fair and equitable treatment and that the imposition of tax liability on Vodafone violated the investment treaty agreement between India and the Netherlands, sources told Reuters.

The telecom giant had moved the International Court of Justice (ICJ) in 2016 following no consensus between its and government's arbitrators in finalising a judge for resolving the tax dispute.

Vodafone was represented by DMD Advocates at ICJ. Vodafone in 2013 had invoked India-Netherlands bilateral investment treaty seeking resolution to the tax demand imposed on it by enacting a tax law with retrospective effect to sidestep a Supreme Court judgement that went in the company's favour.

Vodafone argued that India does not have jurisdiction over the matter on account of its investment pact with the United Kingdom. On the other hand, Centre retaliated that it was an "abuse of the process of law" as the cause of action of the second arbitration was the same as the first one and is against the same host state.

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