Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: VAT RATES :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: articles on VAT and GST in India :: due date for vat payment :: Central Excise rule to resale the machines to a new company :: VAT Audit :: list of goods taxed at 4% :: form 3cd :: cpt :: TDS :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT
« News Headlines »
 What to do if your TDS is not deposited with the government
 What if you forget to verify your Income Tax return?
 TDS on rent and other tax tasks to complete before March 31
 5 income tax changes which will come into effect from April 1, 2018
 Why you shouldn't be a last-minute tax filer
 How to calculate income tax for this assessment year on Moneycontrol
 6 Tax notices you may get and how to cope with them Income Tax Notice
 Deadline to pay advance tax ends tomorrow: Here is a step-by-step guide
  Central Goods and Services Tax (Second Amendment) Rules, 2018
 Income Tax Return Filing Deadline: Waiver On LTCG Tax To End On 31 March. Details Here
 Income tax returns (ITR) filing: Top mistakes that can be very costly

I-T dept plans to cash in on Vodas diverging statements
December, 19th 2007
The income tax department, which is in the middle of a legal showdown over the taxability of the recently-concluded $11-billion Vodafone-Hutchison Telecom International (HTIL) deal, is gearing up to use Vodafones statements to support the departments claim for a $2-billion capital gains tax.

The I-T department hopes this will turn the tables in its favour. Vodafone had stated in its agreement with the Essar group as well as with other entities involved in the deal, and in several deal-related announcements, that it was taking over the 67% stake in the telecom business of Indian telecom major Hutch-Essar, now renamed Vodafone-Essar.

This piece of information runs against the tenor of argument of Vodafone. Vodafone had argued that it only bought over the shares held by CGP Investments, a company based in Cayman Islands. CGP, which held 67% stake in Hutch-Essar, was a 100% subsidiary of the Hong Kong-based Hutchison International.

The deal has taken place outside India, between the two companies that were registered outside the country. Hence, it is not libale to pay tax in India. Moreover, Vodafone had said that tax should be paid by the seller of shares, not the buyer. This was the sum and substance of Vodafones argument.

However, the I-T department thinks that Vodafones earlier statement that it is taking over 67% stake in Hutch-Essar would support its claim for capital gains tax. This statement, according to the department, suggests that Vodafone knew it was taking over an Indian company, therefore it should have complied with the tax laws of the land.

The department believes this can counter Vodafones main argument for refusing to pay capital gains tax in India. Though the company which was holding the shares was located outside India and is beyond the jurisdiction of local tax authorities, the IT department went ahead with the claim that the shares of Indian company changed hands.

Clearly, the department is in no position to make the claim on the Hong Kong-based Hutch. As a result, it feels that the onus of tax payment lies with Vodafone, the new buyer. The I-T department believes that Vodafone should have deducted from the amount it paid to HTIL for paying the capital gains tax on the deal.

This was the basis on which it sent the notice to Vodafone-Essar asking it to explain why it should not be considered the British telecom giant Vodafones agent in India.
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

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