A review petition has been filed in the controversial most-favored-nation (MFN) judgment delivered by the Indian Supreme Court last month.
India’s top court, on October 19, handed down a controversial ruling concerning MFN clauses in India’s tax treaties with countries including France, the Netherlands and Switzerland.
The tax authority had refused to accept the taxpayers’ request for invoking the MFN clauses in the tax treaties, under which a reduced withholding tax rate were to be applied.
The top court, however, found in favour of the tax authority. The court accepted the tax authority’s argument that the MFN clauses could not be invoked because the Indian government did not issue any notification to activate the MFN clause – a prerequisite under Indian domestic legal framework.
As per sources, a review petition has now been filed asking the court to review its decision.
The judgment was delivered in Assessing Officer (International Taxation) vs. M/s Nestle SA.