New Delhi: There has been a breakdown in talks between the government and Vodafone over tax dues. Sources say that the government is likely to withdraw the proceedings.
The Finance Ministry has floated a Cabinet note for the withdrawal of conciliation and the Law Ministry, too, has cleared the withdrawal.
The conciliation proceedings had been agreed to by the Cabinet in June 2013 but the Finance Ministry has said that Vodafone’s stance is not in consonance with the Cabinet nod.
According to sources, Vodafone wanted to include transfer pricing issue in the conciliation. Vodafone also wanted the international arbitrators to be part of the process but the government disagreed.