08-09-2010 Vodafone exploring options to challen…

rb
Wed, Sep 08, 2010 | Updated 08.58PM IST

8 SEP, 2010, 08.35PM IST,PTI

Vodafone exploring options to challenge HC judgement in SC

NEW DELHI: Vodafone today said it is seeking legal advice to challenge the Bombay High Court order that dismissed its plea against the I-T department's Rs
12,000 crore demand in tax and penalty on the company's acquisition of of Hutchison Telecom in a deal of about Rs 50,000 crore.

Reacting to high court order that said the I-T department has the jurisdiction to tax the transaction, the company asserted that it is seeking legal advice to challenge
the judgement.

A division bench of the Bombay High Court today ruled that that Income Tax Department had the jurisdiction to tax the transaction. "The transaction has sufficient
nexus with India and the I-T department has the jurisdiction to levy tax on the transaction," it noted.

The Vodafone statement further said that high court had directed the Indian Tax Authorities not to raise any final order for a period of eight weeks, which provides
Vodafone time to review the judgement in detail and consider its next steps, "which includes the option of an appeal to the Supreme Court".

After an initial review of the order, Vodafone said that the court has upheld its contention that the transfer of shareholding of CGP (Cayman Island based company
which held the Indian assets of Hutchison Telecommunications) was a "valid transaction (i.e. not a sham structure) and therefore not liable to be taxed in India.

Vodafone, through its group firm Vodafone International Holdings, in 2007 bought Hutchison Telecommunications India Ltd's (HTIL) stake in Hutchison Essar for over
USD 11 billion (about Rs 50,000 crore).

The I-T department held that Vodafone liable for not deducting tax at source from payment made to Hutchison and claimed around Rs 12,000 crore in tax and
penalty on the deal.

According to sources, the I-T department has imposed a tax of about Rs 8,000 crore and another Rs 3,500 crore as penalty.

The I-T affidavit said that Hutchison Telecommunications International Ltd (HTIL), through its investments in India, had made substantial gains which were chargeable
to tax under the provisions of the Income Tax Act 1961.

While the I-T contended that the transaction was liable for tax payment in India, Vodafone International Holdings contended that both the seller and buyer were
foreign companies and that the deal was made outside India.

Get a Quote
Browse Companies
Type Company Name A B C D E F G H I J K L M N O P Q R S T U V W X Y Z | 1 2 3 4 5 6 7 8 9

Home | New s | Markets | Personal Finance | Mutual Funds | Infotech | Jobs | Opinion | Features | Videos | My Portfolio

Other Times Group news sites Living and entertainment Hot on the Web Services
Times of India | इकनॉमक टाइ
स Timescity | iDiva | Bollyw ood | Zoom Hotklix Book print ads | Online shopping | Business solutions | Book domains | Web hosting
ઈકોનોિમક ટાઈ
સ | Mumbai Mirror Business email | Free SMS | Free email | Website design | CRM | Tenders | Remit
Times Now | Indiatimes Networking Cheap air tickets | Matrimonial | Ringtones | Astrology | Jobs | Property | Buy car
नवभारत टाइ
स | महारा टाइ
स itimes | Dating & Chat | Email eGreetings

About us / Advertise with us / Careers @ TIL / Terms of use / Privacy Policy / Feedback / Sitemap Copyright© 2010 Times Internet Limited. All rights reserved.

…indiatimes.com/…/6520759.cms?prtp… 1/1