Draft rules on retro withdrawal win-win for govt, firms, say experts

Enforcement of investment treaties remain ambiguous, they say

Experts say the draft rules put up by the income tax department offers a win-win situation for the government and companies such as Cairn and Vodafone to settle their disputes arising from retrospective taxation.

However, enforcement of investment treaty awards remains ambiguous in India, prompting these companies to seek alternative routes to do so like approaching international arbitral panels or courts in other jurisdictions to seize assets of the country.

"The government has offered a win-win solution to this prolonged litigation. It is a balanced approach of the government offering a resolution to the taxpayer to end litigation," said