Vodafone representatives to meet Revenue Secretary next week
Representatives of Vodafone, which is facing a tax liability of over Rs 11,200 crore, will meet top revenue officials next week to discuss the tax matter related to an acquisition by British telecom major in 2007.
New Delhi: Representatives of Vodafone, which is facing a tax liability of over Rs 11,200 crore, will meet top revenue officials next week to discuss the tax matter related to an acquisition by British telecom major in 2007.
"Vodafone officials will meet Revenue Secretary Sumit Bose and also Central Board of Direct Taxes (CBDT) Chairperson Poonam Kishore Saxena next week to discuss the tax-related issues," a senior Finance Ministry official said.
To a recent tax reminder by the Revenue Department, Vodafone had replied that it believes the company was not liable to pay tax for its USD 11.2 billion acquisition of Indian telecom business of Hutchison Whampoa.
The Revenue Department responded back to the Vodafone's reply in which it had expressed willingness to discuss the issue with the company's officials.
The meeting will take place in the backdrop of Finance Ministry's assertion that it was addressing concerns of investors on the retrospective amendments to Income Tax laws.
The Vodafone tax case relates to capital gains tax arising from the sale of telecom business by Hong Kong-based Hutchison Whampoa that involved Indian assets to Vodafone in 2007.
The I-T Department on October 22, 2010 passed an order determining a tax liability (including interest) of Rs 11,218 crore on Vodafone for the deal which took place in Cayman Islands in 2007.
The Supreme Court, however, quashed the order in January 2012. After the ruling, the Income Tax Act was amended with retrospective effect to bring into the tax net such overseas merger and acquisition deals that involve Indian assets.
Section 119 of the Finance Act, 2012, seeks to validate the October 2010 order of the I-T department. The department had also passed an order imposing a penalty of Rs 7,900 crore on Vodafone in April, 2011.