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CBDT: Vodafone case verdict historic for international tax
September, 09th 2010

Reacting to the Bombay High Courts judgement on the Vodafone tax case, the Central Board of Direct Tax (CBDT) has said that this is a historic verdict for international taxation, reports Media.

There are two different sets of reaction given by CBDT. The first is ofcourse a sense of satisfaction on the verdict from a host of officials like CBDT Chairman SSN Moorthy and other key taxmen who have been handling the case at the board level.

Two things will be taken up by CBDT. First it will wait for Vodafone to approach the Supreme Court. Besides the IT department may begin assessment of demand under Section 201 as the pending tax of Rs 1200 crore is not the final figure.

So far the IT department has only send a show cause notice to Vodafone. With the Bombay High Court upholding the jurisdiction, the IT department will begin assessment of the final demand.

However there were some confusion regarding the application of eight weeks time whether that prevents the IT department from issuing a demand under Section 201.

 
 
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