Vodafone on Friday got stay on Rs 3,700-crore tax demand from the Income Tax Appellate Tribunal (ITAT).

Vodafone was directed to deposit Rs 200 crore as initial payment and submit bank guarantees for the remaining sum.

“Vodafone can confirm that the Income Tax Appellate Tribunal (ITAT) has granted a stay of execution of the Transfer Pricing Order which Vodafone received in December 2011,” Vodafone said.

Vodafone said that it maintains that there is no tax payable on this transaction and will continue to strongly defend its position against this order.

Last month Bombay High Court had asked the Vodafone to approach the tribunal to seek redressal in the tax claim case.

The tribunal, which granted a six-month stay on the proceedings by tax authorities, did not accept the IT Department's demand that the company be asked to deposit at least 50% of Rs 3,700 crore tax claim as a precondition to obtain a stay.