Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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: ARTICLES ON INPUT TAX CREDIT IN VAT :: ACCOUNTING STANDARDS :: list of goods taxed at 4% :: due date for vat payment :: form 3cd :: ACCOUNTING STANDARD :: cpt :: TDS :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: VAT RATES :: VAT Audit
 
 
« News Headlines »
 Should you file revised Income Tax returns; find out here
 Tax Deducted at Source (TDS) in Goods & Services Tax (GST)
 10 companies that blamed GST for soft June quarter
 How will GST impact the Indian economy
 10 days left to file your first GST return. This is how you do it
 What is property tax and how is it calculated…
 File income tax returns in time to carry forward losses
 Missed the deadline to file income tax returns? Here is what you should do
 Who has to report foreign assets in Indian income tax return and how to do it
 How to file income tax return after due date
 Why you should not rely solely on your income tax return filer, chartered accountant when filing ITR

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 2017 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