Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: empanelment :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: TDS :: articles on VAT and GST in India :: cpt :: ACCOUNTING STANDARDS :: VAT Audit
 
 
« News Headlines »
 6 important income tax rules for individuals which will change from April 1, 2017
 Key changes in income tax rates individuals need to look at from 1 Apr
 Provisional Enrollment under Goods and Service Tax (GST)
 Ten income tax changes that will come in to effect from April 1
 New income tax provisions you need to be aware of
 8 benefits you must know about this tax-saving mutual fund
 10 most important income-tax changes which will apply from April 1
 Delhi: 54 CAs, company secretaries on radar in I-T crackdown against black money
 10 Income Tax Rules That Will Change From April. See Details Herea
 Looking for last-minute tax planning with Section 80C investments? Here's help
 Aadhaar mandatory for filing income tax return

Vodafones petition premature, says IT department
October, 17th 2007

The Income Tax (I-T) department has termed as premature the petition filed by Vodafone-Essar in the Bombay High Court challenging its notice, which proposed that capital gains tax be levied on the $11.2 billion Hutchison-Vodafone deal.

The I-T department had issued the show-cause notice to Vodafone-Essar asking the company why it should not be treated as an agent of Hutchison International, which sold a 67 per cent, majority stake in Hutchison Essar to Vodafone.

Considering the fact that the department has not yet levied any capital gains tax on the company, the petition is premature, the department said.

In September, Vodafone-Essar had approached the high court challenging the tax departments move.

The department is yet to carry out an assessment of the transaction and the books of accounts, which will be done only after Vodafone-Essar replies to the notice.

Vodafone, Netherlands, was acquired by CPG Limited, a 100 per cent subsidiary of HutchisonMax. CPG owns 8 companies in Mauritius and has bought a 52 per cent stake in Hutch, India.

This is probably the first time that tax authorities are attempting to tax a transaction between two foreign companies involving the transfer of an Indian asset. If the tax liability is established, it could amount to around $ 1.7 billion.

Under normal circumstances, the seller (Hutchison) has the liability. However, since the department does not have access to Hutchison in Hong Kong, they sent the notice to the buyer (Vodafone-Essar).

Taxmen are claiming capital gains under Section 9(1)(i) of the Income-Tax Act since the transaction involved the transfer of an Indian asset for which approval of the Foreign Investment Promotion Board was sought.

Challenging the departments contention, Vodafone-Essar stated that since the transaction was structured through Mauritius, it should not attract tax in India. India has a double taxation avoidance treaty with Mauritius.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Quality Assurance Services Testing and Re-testing

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions