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: TDS :: articles on VAT and GST in India :: ACCOUNTING STANDARD :: due date for vat payment :: list of goods taxed at 4% :: form 3cd :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: VAT Audit :: VAT RATES :: ACCOUNTING STANDARDS :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt
« From the Courts »
 Shri Rakesh Kumar Gupta Vs. The Commissioner Of Income Tax-Xiii & Anr.
 Central Board Of Direct Taxes Vs. Satya Narain Shukla
 Meena Rastogi Vs. Central Board Of Direct Taxes, & Anr.
 Siddharth Rastogi Vs. Central Board Of Direct Taxes, Union Of India, Ministry Of Finance, Department Of Revenue & Anr.
 ITO vs. NVS Builders Pvt. Ltd (ITAT Delhi)
 Approva Systems Pvt. Ltd vs. DCIT (ITAT Pune)
 Procter & Gamble Home Products Pvt. Ltd vs. ITAT (Bombay High Court)
 Virag Tiwari Vs. Principal Commissioner Of Income Tax-21 & Others
  Anand Agarwal vs. Vilas Chandrakant Gaokar (Bombay High Court)
 Maxopp Investment Ltd vs. CIT (Supreme Court)
 Order of a Four-Member Appellate Authority constituted under Chartered Accountants Act is Valid: Delhi HC

Govt makes overseas call for Hutch-Voda details
July, 09th 2008

India has written to UK and Dutch tax authorities seeking details of the Hutch-Vodafone transaction to acquire Hutch-Essar.

Sources close to the development said that the Indian government had sought the sale and purchase agreement that Vodafone International Holdings had entered into with Hong Kongs Hutchison. This comes even as the tax authorities and the company battle out their dispute on payment of capital gains tax in the Bombay High Court.

The missive sent out to seeks details of the agreement between Vodafone and Hutchison which the Income Tax department believes would have been given to tax authorities in these countries. A subsidiary of Vodafone Group, Vodafone International (a Netherlands-registered company) had picked up Hutchisons (based in Cayman Islands) 52% stake in Hutchison-Essar to form the Vodafone-Essar in a $11.2 billion deal.

Vodafone International had bought out a Cayman Islands company called CGP investments, which was owned by Hutchison. CGP owned 52% stake in Hutchison Essar, the Indian telecom company, through several Mauritius entities.

 The I-T department counsel had on July 7 said in the High Court that Vodafone had failed to produce the agreement between Hutchison and itself, which alone could reveal the true nature of the transaction.

The department is yet to carry out an assessment of the transaction and books of accounts which takes place only after it has examined the reply to the show cause notice. It may be pointed that Vodafone had approached the court soon after the I-T department issued it a show cause notice.

Vodafone, at Tuesdays hearing in the HC, offered to file the sale purchase agreement it had signed with Hutchison.
The department had issued a show-cause notice to Vodafone Essar asking why it should not be treated as an agent of Hutchison International.

The department is claiming capital gains under Section 9(1)(i) of the Income-Tax Act as they are of the view that the transaction involved transfer of an Indian asset for which even the Foreign Investment Promotion Boards nod was taken.

Vodafone is contesting the claim that the Indian unit (Vodafone Essar, erstwhile Hutchison Essar) was as an agent of the non resident (Hutchison International) under Section 163 of the Income-Tax Act, 1961.

The case is being keenly watched in India and in global arena as decision in this case would set the course for future and impact many such cross border transactions.

It may also be pointed that the government retrospectively amended tax deducted at source provision in the Income Tax Act through the Finance Act, 2008. The amendment seeks to expand definition of the term assessee-in-default to include the seller who does not deduct tax at the source.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Work Flow Workflow Software Software Automation Workflow automation Software Design Workflow Design Business Work Flow Workflow automation tools

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