Royal Dutch Shell has won a lengthy court battle against the Indian government over a disputed tax bill worth several billion dollars. The ruling was announced by Bombay’s High Court, which found in favour of Shell’s business in India.
It had been accused of share-transfer under-pricing in February of last year. Government officials had submitted a claim for tax on top of interest earned. However, the court found that stock transfers were not subject to tax.
This ruling is a key victory for all international oil and gas companies working in India; as a number of them have been targeted by the authorities for unexpected taxes. The issue has extended across other industries too, with other large global firms such as Nokia, IBM and AT&T having been investigated.Last updated on 12:17PM - 24/11/14