Vodafone files appeal against IT order

June 07, 2010 04:07 pm | Updated November 16, 2021 09:53 am IST - Mumbai

Vodafone International Holdings BV, a unit of Vodafone Group plc, on Monday filed an appeal in the Bombay High Court against the decision of the Indian tax authorities asking it to pay tax on its acquiring a majority stake in local mobile-telephone operator Hutchison Essar for $11.1 billion in February 2007.

In a statement, Vodafone Group plc said that the appeal filed by its unit Vodafone International Holdings BV was against the tax authorities' order of May 31, 2010, which said that it had the jurisdiction to tax the transaction and the tax liability of Vodafone is estimated to be around Rs. 12,000 crore. The Vodafone statement said that while an amount of tax has been suggested by the tax authorities, “it is important to note that this is not a demand for payment.”

Vodafone's contention has been that it is not liable to be taxed in India because its deal to buy a 67 per cent stake in Hutchison Essar from Cayman Islands-registered CPG took place on foreign soil. The tax department's case has been that Hutchison made capital gains in the deal, and while paying the amount to Hutchison, Vodafone should have deducted tax on it.

0 / 0
Sign in to unlock member-only benefits!
  • Access 10 free stories every month
  • Save stories to read later
  • Access to comment on every story
  • Sign-up/manage your newsletter subscriptions with a single click
  • Get notified by email for early access to discounts & offers on our products
Sign in

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.