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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