An international arbitration tribunal in The Hague ruled that India's imposition of a tax liability on Vodafone, as well as interest and penalties, were in a breach of an investment treaty agreement between India and the Netherlands.

It also directed India to pay 4.3 million pounds ($5.47 million) to the company as compensation for its legal costs.

"The government will be studying the award and all its aspects carefully in consultation with our counsels," India's finance ministry said in a statement, adding that it will consider all options, including legal remedies.

(Reporting by Chandini Monnappa in Bengaluru; Writing by Devjyot Ghoshal; editing by Louise Heavens)