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: VAT Audit :: VAT RATES :: TDS :: form 3cd :: list of goods taxed at 4% :: empanelment :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: cpt :: ACCOUNTING STANDARD :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARDS :: due date for vat payment
 
 
« Mergers and Acquisitions »
 Preparing for International Mergers and Acquisitions
 Merger control regime: CCI sharing concerns at early stages would reduce trust deficit
  Deals of the day-Mergers and acquisitions
 Oil companies’ mergers: Indian Oil Corporation chairman B Ashok says ‘Worthwhile to look at the possibilities
 It's complicated: Regulatory hurdles that Vodafone-Idea merger could face
 China FX head Pan Gongsheng says overseas mergers and acquisitions like ‘a rose with thorns’
 Technology drove Michigan's mergers and acquisitions in 2016
  Pharmaceutical Mergers And Acquisitions – M&A In The Biopharmaceutical Industry And The Impact On Innovation
 Road ahead for Indian M&A seems brightly lit: PwC report
 Fed eases bank merger rules by lifting size threshold for review
 Deals of the day-Mergers and acquisitions

FIPB nod means Hutch-Voda deal taxable: I-T dept
August, 18th 2010

The Income-Tax department on Tuesday told the division bench of the Bombay High Court, hearing the Vodafone tax case, that approval from the Foreign Investment Promotion Board (FIPB) was critical to the $11-billion acquisition of Indian company Hutch Essar by Vodafone. FIPB is a nodal government agency that monitors foreign direct investments into the country.

The division bench comprising Justices DY Chanrachud and SJP Deodhar has been hearing a petition filed by Vodafone, challenging the decision of the I-T department to levy capital-gains tax on the cross-border transaction. The I-T authorities are seeking to levy Rs 12,000 crore on Vodafone.

The I-T authorities, represented by senior lawyer Mohan Parasaran, told the HC that the India nexus with the mega-transaction was evident from the approvals obtained from FIPB. Therefore, it cannot be held that India has no jurisdiction to levy tax on a transaction that took place outside India between two foreign parties, the I-T had argued in court.

I-T authorities also told the court that the interest in the Indian company Hutchison Essar (HEL), comprising of various rights, is the subject matter of the sale and purchase agreement between Vodafone and Hutchison. The composite rights discussed in the agreement include management control, rights on brands, rights to conduct business in India etc.

Mr Parasaran pointed out that the transaction was not merely between Vodafone and an entity based in the Cayman Islands. In order to substantiate, Mr Parasaran described the structure of the transactions in detail and said that Vodafone would not have been able to acquire controlling stake in the Indian company merely by transferring the shares of CGPC. CGPC held only 42.3 %, Mr Parasaran pointed out.

The I-T department brought up this point to support its argument that the $11-billion acquisition of HEL by Vodafone had a nexus with India and this was not just a transaction that took place outside India between Vodafone and an entity in tax haven.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Experience

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