Thursday, February 16, 2012

I-T HAS NO ROLE IN VODAFONE - HUTCH DEAL: SC

Case facts:


  • In 2007, Vodafone bought a 67% stake in Hutchison Essar for about Rs 55000 cr.
  • The revenue department said the sale was taxable because the assets acquired by Vodafone are based in India.
  • The department said that Vodafone should have deducted taxes before making a payment of $11076 million (about Rs 55000 Cr) to Hutchison Telecommunications.
  • Vodafone claims no tax levy because deal was between Non - India companies outside country.
  • Vodafone lost case in the Bombay high court in 2008 and appealed to SC
  • SC asked Vodafone to deposit Rs 2500 cr along with a bank guarantee worth Rs 8500 Cr against its  alleged dues of nearly Rs 12550 Cr.
  • Vodafone wins the case in Supreme Court.
  • SC asks the department to refund Rs 2500 Cr with  4% interest (Rs 100 Cr).

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