Mumbai: Vodafone is again issued with the fresh reminder notice from the Income Tax department where Vodafone was asked to note of its Rs. 14,200 crore tax dues, as stated by Vodafone and also it is made clear that its asset seizures may be effected in case of non- payment of such dues.
Moreover, the Vodafone which is UK- based firm is referring the matter to the International Arbitration, as stated in the statements by the Vodafone which were released on this Tuesday, i.e. on 16th day of this February. However, as also stated by the said UK Firm, the Government in its statements which were released in the year 2014, stated that the disputes like their one being the existing tax disputes would be resolved through the existing judicial process.
Now, the notice which was issued to the Vodafone International Holdings BV is seemed pertaining to the acquisition by it of Hutchison’s 67 per cent stake in the telecommunication sector in India, which was held in the year 2007. However, the Tax department has demanded Rs. 7,990 crore on the transaction as a basic capital tax. Moreover, the Vodafone company was denying such tax due as the transaction was conducted out of India. However, Tax department said that the capital gains were made on assets in India. Thus, the matter is sought to be referred to the International Arbitration for resolving it.
The Income Tax Department has again sent the reminder notice to Vodafone for reminding the Rs. 14,200 crore in taxes. The Company in its comments stated referring the promise made by Prime Minister- Modi on Saturday in Mumbai, that the action by the Tax department seems a complete disconnect between the Government and the tax department, in the same week when PM- Modi is promoting the Tax- friendly environment for foreign investors. Thus, now the matter is sought to be referred to the International Arbitration, as desired and commented in its statements by the Company- Vodafone- a telecom major.
Moreover, the Industrialist Ratan Tata had also commented on this disconnect issue, and asked people to come to India if they found it making business sense for them.
Adv. Faim Khalilkhan Pathan