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Vodafone facing total tax liability of over Rs 27000 crore in India including Rs 14200 crore for acquiring Hutchison
TT Correspondent |  |  09 Jun 2014

UK-based telecom major Vodafone is facing tax claims and interest totalling more than Rs 27,000 crore in India, which includes Rs 14,200 crore for acquiring Hutchison's stake in 2007, the company said in its annual report. According to the report, "Vodafone India (VIL) and Vodafone India Services Private Limited (VISPL) are involved in a number of tax cases with total claims exceeding 1 billion pound plus interest, and penalties of up to 300 per cent of the principal.", Reports, PTI.

The report said, "Vodafone International Holdings BV (VIHBV) has not received any formal demand for taxation following the Finance Act 2012 but it did receive a letter on January 3, 2013 reminding it of the tax demand raised prior to the Indian Supreme Court's judgement and purporting to update the interest element of that demand in a total amount of Rs 142 billion."

Besides, the UK telecom company is facing a tax liability of over £1 billion. These claims are related to transfer pricing, disallowance of income tax holidays and applicability of value-added tax to SIM cards.

Apart from the tax cases, Vodafone's local outfit is also facing a number of regulatory cases, the report said.

"Litigation remains pending in the Telecommunications Dispute Settlement Appellate Tribunal, High Courts and the Supreme Court in relation to a number of significant regulatory issues including mobile termination rates, spectrum and licence fees, licence extension and 3G intra-circle roaming," Vodafone said.

As regards the liability of Rs 14,200 crore towards acquisition of Hutchison Whampoa in 2007, the company faces tax demand following the retrospective tax amendment carried out by the UPA government in 2012.

    
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09 Jun 2014(IST)  
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