Nestle India Reassures Stakeholders Amid MFN Status Suspension

In a recent development, Swiss multinational Nestle has confirmed that the suspension of Most Favored Nation (MFN) status granted to India by Switzerland will not affect the company. The suspension was enacted under the Double Taxation Avoidance Agreement.

A spokesperson from Nestle India emphasized, "This issue is not specific to Nestle but pertains to the policy between India and Switzerland. Nestle India has been deducting 10% withholding tax, which remains unaffected."

The Swiss government announced the suspension of MFN status on December 11, following a ruling by the Supreme Court of India. The 2023 judgment stated that MFN status under the DTAA cannot be enforced unless notified under Section 90 of the Income Tax Act.