Revenue dept sends reminder on tax liability to Vodafone
Quotes

Revenue dept sends reminder on tax liability to Vodafone

Last Updated: Saturday, January 05, 2013, 15:35
 
 Comment 0
 
Revenue dept sends reminder on tax liability to Vodafone
New Delhi: The Revenue Department has sent a reminder notice to British telecom major Vodafone to pay taxes, estimated at around Rs 11,200 crore, for its acqusition of Hutchison's stake in 2007.

"Vodafone confirms that it has received a reminder from the Indian tax authorities that the original tax demand remains due from the Hutchison Whampoa/Vodafone transaction in 2007," the telecom firm said in a statement.

It futher that the company in its reply to the Revenue Department has said that no tax is payable.

"Vodafone has replied to this reminder, stating that it continues to believe that no tax is payable on the above transaction," the British firm said.

The tax reminder, it added, does not include any deadline for payment of the tax.

The reminder 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 Income Tax 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 apex court's 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 Income Tax Department. The Department had also passed an order imposing a penalty of Rs 7,900 crore on Vodafone in April, 2011.

PTI




First Published: Saturday, January 05, 2013, 15:35


Comments


comments powered by Disqus
G20 Summit 2014
G20 Summit 2014
2014`s Top People in Business: Fortune
2014`s Top People in Business: Fortune
World Bank`s Top 10 Places for Business
World Bank`s Top 10 Places for Business
India`s top ten billionaires
India`s top ten billionaires
Top 10 billionaire cities- In Pics
Top 10 billionaire cities- In Pics

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved