New Delhi : The Income Tax department has rebutted Vodafone’s notice under BIPA saying that the pact between India and Netherlands does not cover taxation issues.
“Tax department has sent its response to Vodafone saying BIPA does not cover tax issues,” an official source told PTI.
The response to the Bilateral Investment Promotion and Protection Agreement (BIPA) notice was sent out after the Cabinet turned down revenue department’s proposal seeking to withdraw conciliation offer. This was after Vodafone pressed for including transfer pricing case in its ambit and carrying negotiations only under United Nations Commission on International Trade Law (UNCITRAL). The Cabinet, however, has left a window open now by not withdrawing Vodafone conciliation talks.