Vodafone seeks time till January next for tax claim reply

Last Updated: Friday, November 20, 2009 - 20:50

New Delhi: UK-based mobile major Vodafone
has sought an extension until January 29 next year to reply to
a tax claim notice issued last month by the Income-Tax
Department, the Lok Sabha was informed on Friday.

On October 30, 2009, the Income-Tax Department issued a
notice to Vodafone International Holdings BV (VIH BV) over its
11.2-billion dollar purchase of Hutchison Telecom`s Indian
operations (Vodafone Essar) in 2007.
"Vodafone International Holdings BV (VIH-BV) was required
to file its explanation by November 16, 2009. However VIH BV
has requested for further time till January 29, 2010,"
Minister of State for Finance S S Palanimanickam said in a
written reply to the Lok Sabha.

A notice was issued to VIH BV to show cause why the I-T
Department can not proceed against it for default of
non-deduction of tax at source from the payment made to
Hutchison Telecom International Ltd (HTIL) for acquiring the
controlling interest and other assets of HTIL in Indian
telecom company Hutchison Essar Ltd.

"VIH BV was also asked to show cause why it should not be
treated as an assessee in default for its failure to deduct
and pay the tax," Palanimanickam said.

Vodafone acquired a 67 per cent stake in Hutchison Essar
from Hutchison Telecommunications International, in May 2007.
Vodafone has always maintained that, because the deal took
place between CPG, which is registered in the Cayman Islands,
and Vodafone International, which is based in the Netherlands,
it is not liable to pay tax in India.


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First Published: Friday, November 20, 2009 - 20:50

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