MUMBAI: Vodafone's victory over India's tax authorities may have a sting in the tail. The UK phone giant's $2.2 billion Supreme Court win is a boost to India's battered reputation. It also bodes well for firms such as AT& , which are threatened with similar tax bills. But if the government now changes the law, future offshore M&A deals may not escape so easily.

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The verdict is clearly great news for Vodafone, which had set aside $5 billion in case the ruling went against it and it had to pay penalties on top of its tax bill. It also looks promising for other firms which have been threatened with similar cases. These includes the likes of SABMiller , which has a pending case related to its 2006 purchase of the Indian division of Fosters, and multinationals including AT&T, E*Trade and Kraft.

'Vodafone's $2.2 billion win in SC a boost to India's battered reputation' - Times of India