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India-EU ties stumble over keeping tax out of bilateral investment treaty

The EU is concerned that this will leave little protection for its investors in India

Non-compete fee: The debate goes on
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Indivjal Dhasmana New Delhi
The government has tried to plug the loopholes that enabled companies such as Vodafone and Cairn to go for international arbitration over tax disputes. As such, it came out with model Bilateral Investment Treaty (BIT), 2015.

BIT, the model draft of which was cleared by the Union Cabinet in December 2015, keeps taxation out of its ambit, with the idea that foreign companies finding themselves in a tax row with the government will not be able to invoke the investment treaty their parent countries signed with India, as is the case with the Bilateral Investment Protection and Promotion Agreements (BIPPA).

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First Published: Apr 10 2017 | 1:33 PM IST

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