Monday, December 15, 2008

VODAFONE TAX UPHELD

In a setback to Vodafone, the Bombay high court dismissed the telco's writ petition against the income tax department's show cause notice seeking around $1.7 billion as capital gains tax. Vodafone will now move to the Supreme Court. The high court is learnt to have dismissed the plea mainly on
the ground that there is no "patent illegality" in I-T Department's show cause notice. Also, as per sources, the petitioner, Vodafone international, has suppressed a very important agreement dated February 11, 2007, between Hutchison and Vodafone international. Vodafone, based on advice
received, continues to believe that the transaction is not subject to tax in India and is confident of positive outcome ultimately.

0 comments:

Post a Comment