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 STANDARDS :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: empanelment :: Central Excise rule to resale the machines to a new company :: TDS :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: VAT Audit :: cpt :: due date for vat payment :: articles on VAT and GST in India :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: ACCOUNTING STANDARD
 
 
« General »
 What the increase in tax collections does not tell us about Indian economy post demonetisation
 India’s crazy retrospective tax on foreign funds will tarnish country’s reputation
 How tax related, PAN grievances can be resolved through E-Nivaran
 Tackling income tax exemptions for equities and agriculture
 Amfi wants tax benefits for retirement plans
 Top five factors which could chart market direction in the coming week
 Tax rate hikes boost shadow economy
 Tax mop-up may decline in new amnesty scheme
 Weeks before Budget, Finance Minister Arun Jaitley lists out benefit of low tax rates
 Second home loan tax benefits
 Alarm bells over return of tax inspector raj

Vodafone gets Rs 3700 crore tax bill from income tax department
December, 19th 2013

In a fresh setback for British telecom giant Vodafone which is embroiled in talks with the government to settle a Rs 20,000 cr tax spat over the 2007 Vodafone-Hutchison deal, the income tax department has issued a demand notice of Rs 3700 cr against the MNC's Indian arm on Wednesday, two people familiar with the development told ET NOW.

ET NOW was the first to report the development. "A final assessment order and a notice of demand seeking Rs 3700 crore in taxes ( including interest) has been sent to Vodafone India Services Private Limited. The company has been given a time-frame of 30 days to comply with the I-T proceedings or approach the appropriate forum for relief. This development is part of the assessment proceedings for 2008-09 and follows an earlier draft transfer pricing order that sought to add Rs 8500 cr to the company's
taxable income," said one of the two sources mentioned above.

In response to an e-mail query, Vodafone spokesperson Ben Padovan told ET NOW , " "Vodafone disagrees with the Dispute Resolution Panel decision relating to the Transfer Pricing Order which Vodafone received in December 2011. Vodafone maintains that there is no tax payable on this transaction and the company will file an appeal before the tax appeal tribunal as soon as possible.

The facts of this case - including the transaction structure - were examined in considerable detail by India's Supreme Court, which delivered an unambiguous judgment affirming that there is indeed no tax due. Vodafone will continue to strongly defend its position against this Order."

" This development will add to Vodafone's existing legal battles in India. It calls for effective legal strategies to seek an early resolution," says Sanjay Sanghvi, tax partner, Khaitan & Co. A senior finance ministry ministry official said , " Due to past precedents, the revenue department is expected to continue to be active in the transfer pricing space."

Earlier in September, the Bombay High Court while dismissing Vodafone India's writ petition had instructed the tax department not to serve the final assessment order and directions of the dispute resolution panel till Dec 17th. The company had questioned the jurisdiction of the revenue authorities to add Rs 8,500 crore to the taxable income of its Indian arm following a scrutiny of transactions by its ( Vodafone India) call centre business.

In January 2012, Vodafone had also moved the dispute resolution panel of the income tax department in the same case. Transfer price refers to the actual price at which a transaction takes place between two related parties, usually belonging to the same group. Multinational and transnational firms use transfer pricing to allocate revenue between different divisions.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
System Testing Solution Manual Software Testing Solutions Automation Software Testing Solutions System Workflow Testing System Manual 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