Switzerland withdraws MFN status for India

Switzerland has withdrawn the Most Favoured Nation (MFN) status granted to India, which will result in higher tax implications for Indian companies operating in the central European country.

- DIPAK MONDAL @New Delhi

The Swiss action came after India's Supreme Court rejected automatic applicability of MFN clause under the bilateral tax treaty in a case related to Swiss firm Nestle.

In its order dated December 11, the Swiss government said the Supreme Court's ruling shows Switzerland's interpretation of MFN clause under the Double Taxation Avoidance Agreement is not shared by the Indian side.