Vodafone to Challenge I-T Department’s Notice on Demand of Rs 14,000 Cr

ByRudradeep Biswas TelecomTalk

Published on Feb 8, 2013 5:44pm IST

Live

Hardik Jagda

CEO Proximity

AI is becoming central to modern sports broadcasting

Andrew Bonwick

Vice President of Product Development at Relm Insurance

How insurance and risk models are evolving to support satellite connectivity

Madhav Sheth

CEO of Ai+ Smartphone

Bold attempt to design smartphones specifically for Indian consumers.

Stephen Rose

CEO Render Networks

Why execution in the trenches may be the real key to AI readiness

Vodafone Group will challenge the Indian Income-Tax Department’s notice, alleging the U.K.-based telecom major had under priced its shares issued to a Mauritius—based group company by about Rs 1,300 crore.

Make Telecom Talk My Trusted Source

“As this latest order relates to a share subscription and share subscriptions are not covered by transfer pricing rules, either in India or internationally, we will be challenging the order as it has no basis in law,” a Vodafone spokesperson said.

“Vodafone has received a transfer pricing order in relation to the issue of shares by VISPL (Vodafone India Services Pvt Ltd). This new order is linked to the 2007/8 transfer pricing dispute, which Vodafone is already challenging before the dispute resolution panel. Vodafone has also filed a writ petition challenging the jurisdictional issues on the basis of precedent established in the recent Vodafone International Holdings BV-Hutchison Supreme Court judgment,” he added.

The I-T department has challenged the valuation method adopted by VISPL, which had issued shares to Vodafone Teleservices Mauritius in 2007—08.

Indian tax authorities had slapped a Rs 11,200-crore demand notice to the British telecom major on the capital gains arising from its $11.2-billion offshore deal with Hutchison Whampoa in 2007.

In January, the department had sent a reminder letter seeking Rs 14,000 crore in dues, including interest on delayed payment.

Every article you read here is the result of time, research, and effort. If you feel it adds value, you can support TelecomTalk.