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

By February 8th, 2013 AT 5:44 PM

Vodafone Challenges IT Dept's Demand of Rs 14K CrVodafone 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.

“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.

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VENKATAYUSHrajKaushik Royanoop Recent comment authors
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AYUSH
AYUSH

lage raho vodafone,ek paisa bhi maat dena, tum bhi looto India ka paisa…last 250 saal se too yeh hi chal raha hai…..India main jaoo orr chuske bapas maat ayoo…..

raj
raj

too costly operator.stupid cc.kick the british out of india.They are making customer to pay every rupee in terms of quality & evading income tax to be paid to the govt.Close down all the operations of A-VO-I-D group.

VENKAT
VENKAT

+1

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