Cabinet nods for non-binding conciliation with Vodafone over tax dispute row

New Delhi, June 5 : The union cabinet has approved the start of a conciliation process with Vodafone Group Plc, in a dispute over more than $2 billion in taxes stemming from its 2007 acquisition of mobile phone assets in the country. Addressing a news conference in New Delhi, Finance Minister P Chidambaram said on Tuesday that the cabinet had approved to enter into a 'non-binding' conciliation. On reaching consensus from both the sides, the outcome of the conciliation would be discussed in the Parliament for amending the income tax act of the country. Last year, the Supreme Court of India ruled in Vodafone's favour, saying that the UK telecoms carrier was not liable to pay any tax over the acquisition.

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