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
Latest Expert Exchange
« Transfer Pricing »
 Transfer pricing review and adjustments in Germany
 Indian advance pricing agreement uses customs value as arm’s length price
 Indian advance pricing agreement uses customs value as arm’s length price
  How advance pricing agreement helps India-Singapore business ties
 Doing business in India: ‘Substance’ over ‘form’ in transfer pricing regime
 How advance pricing agreement helps India-Singapore business ties
  CBDT to accept transfer pricing MAP sans riders
 How transfer pricing documentation can make you a happier person
 Transfer pricing review and adjustments in Luxembourg
 Here is what Modi government can do for transfer pricing
 Transfer Pricing In International Transactions – An Overview

Vodafone sent notice from Indian income tax department over tax overdues
February, 16th 2016

Vodafone has received a notice from the Indian income tax department with regards to tax dues. The notice has asked the British telecom player to pay $2.1bn (£1.4bn, €1.9bn) in taxes or face seizures of its Indian assets.

It was speculated that Vodafone Group CEO Vittorio Colao's visit to India in October 2015 was to address this tax dispute. Colao had then sought to meet both Prime Minister Narendra Modi and Finance Minister Arun Jaitley.

Why advertise with us
The tax dispute dates back to 2007, when Vodafone paid $11bn to billionaire Li Ka-shing-owned Hutchison Whampoa, now part of CK Hutchison Holdings Ltd, to acquire its 67% stake in Hutchison Essar Limited, the Indian mobile telecommunications operator.

While Vodafone has since maintained that it is not liable to pay any taxes to the India government, because it was an offshore transaction, the Indian income tax authorities have long argued that the British telecom company is indeed liable because the transaction involved assets in the country.

While this tax bill is still undergoing international arbitration proceedings, which Vodafone initiated in 2014, Anil Sant, deputy commissioner at the Indian income tax department has informed Vodafone International Holdings BV Dutch unit of its arrears through a letter dated 4 February.

This letter states that the income tax department has the right to recover any amount pending to it, even if it is from an overseas company "from any assets of the non-resident which are, or may at any time come, within India." While it is not clear how the Indian government would react if Vodafone were to refuse to make the payment, analysts have said that this case may influence perceptions of foreign investors' towards India.

This is not the only legal dispute that Vodafone, the second-largest mobile carrier in India, has had with Indian authorities. However, it is the largest in financial terms. The other dispute relates to transfer pricing, which involved the valuation of shares issued by Vodafone India to its foreign parent. This dispute was, however, won by Vodafone at the Bombay High Court in 2015, according to Bloomberg.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Website Ranking Website Ranking Company Website Positioning Alexa Ranking Website Promotion Website top 10 ranking website top 10 promotion search engine result promotion Strategic Internet Marketing Website Optimization Website Ranking Factors

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