Business Daily from THE HINDU group of publications
Tuesday, Jan 13, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Tuesday, Jan 13, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Info-Tech
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Taxation Industry & Economy - Courts/Legal Issues Vodafone moves SC against tax order Our Bureau New Delhi, Jan 12 Vodafone has moved the Supreme Court challenging the Bombay High Court order upholding a show-cause notice issued by the Income-Tax Department asking the telecom firm to pay $2 billion post its acquisition of Hutchison’s stake in Hutchison Essar. The Bombay High Court, on December 3, had dismissed the writ petition filed by Vodafone International Holdings challenging the jurisdiction of Indian tax authorities to assess withholding tax (akin to tax deduction at source) arising out of the UK-based company’s acquisition of a controlling stake in Hutchison Essar. The Income-Tax Department had issued a show-cause notice to Vodafone on withholding tax in the $11.2-billion deal in which it acquired Hong-Kong based Hutchison Telecom International’s (HTIL) stake in Hutch-Essar Ltd (now Vodafone Essar). A show-cause notice was issued to Vodafone-Essar too on why it should not be treated as an ‘agent’ in the deal. The Mumbai-based Ruias, who run the Essar group, have a minority stake in Vodafone Essar. Vodafone then filed a writ petition in the Bombay High Court. Its contention was that the tax department had no jurisdiction over a deal between two parties incorporated overseas. Also, Vodafone (through its Netherlands subsidiary) had not directly acquired shares of the India-incorporated Hutch-Essar. It had acquired shares in HTIL’s holding company located in Cayman Islands which, in turn, owned a stake in the Indian company. Vodafone case: ‘No definitive findings on taxability of deal’ An episode in Vodafone story HC ruling on Vodafone to enable I-T Dept to look at similar deals HC dismisses Vodafone challenge in tax case More Stories on : Taxation | Courts/Legal Issues | Telecommunications
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