India Court Adjourns Vodafone India Transfer Pricing Case To Oct 5

By September 26th, 2012 AT 3:59 PM

Vodafone India Transfer Pricing CaseAn Indian high court has adjourned the hearing of Vodafone India transfer pricing case to October 5 and would pronounce its verdict on that day.

The case relates to Rs 8,500-crore transfer pricing case involving Vodafone India Services Pvt. Ltd and the Indian government .

In February, Vodafone had challenged I-T Department’s jurisdiction in issuing a draft transfer pricing order. The department had sought Rs 8,500 crore additional to the taxable income of Vodafone.

The draft transfer pricing order, issued in December 2011, related to transaction on Vodafone’s call centre business.

The income-tax department’s draft transfer pricing order, issued in December, related to a transaction on Vodafone’s call centre business. Indian companies pay 30 per cent tax on their income and a 3 per cent surcharge.

There are large number of incidences of disputes relating to transfer pricing as it is often difficult to arrive at a price agreeable to both the I-T department and the companies.

For Vodafone, the development was a fresh blow, as it was already facing a tax liability of Rs 11,000 crore for purchase of Hutch’s mobile operations in India. In 2007, Vodafone Group bought Hutchison Telecommunications’ 67 per cent equity stake in Hutchison Essar for $11.1 billion.

guest
2 Comments
newest
oldest
Inline Feedbacks
View all comments

Recent Posts

Tata Sky Broadband 500 Mbps Plan With Unlimited Data Costs Rs 2,300 per Month

  Tata Sky has been growing its broadband business quite aggressively over the last few years. Tata Sky Broadband now...

Jio 749 Plan: Unlimited Calls, 24GB Data, One Year Validity and Full Offer Breakdown

Reliance Jio introduced a new Rs 749 plan to existing JioPhone customers alongside two plans for new JioPhone users. The...

JioPhone 2021 Offer Allows Customers to Get 12 Months of Service at Just Rs 749

Reliance Jio has finally introduced a new offer for the JioPhone existing and new users. JioPhone is one of the...