Vodafone tax dispute: Bombay HC rules in favour of the company

Zee Media Bureau

Mumbai: The Bombay high court on Thursday ruled in favour of the Indian arm of British telecoms firm Vodafone in the Rs 8,500 crore transfer pricing tax dispute.

The case involves sale of Vodafone's call centre business to Hutchison in 2007.

Transfer pricing is the practice of arm's length pricing for transactions between Group companies based in different countries to ensure a fair price - one that would have been charged to an unrelated party - is levied.

It may be noted that many multinationals, including Shell India and Leighton India Contractors, are also fighting transfer pricing cases in various courts.