No Vodafone accord till tax law allows settlement process
Sunil Jain :New Delhi, Feb 06 2013, 00:36 IST
big cases that cannot go forward in the absence of a formal dispute resolution process include Nokia where, sources say, a Rs 13,000-crore tax demand is in the process of being served for alleged transfer pricing violations; a Rs 3,500-crore dispute with Vodafone over the demerger of its passive infrastructure assets to Indus Towers; and a Rs 8,500-crore transfer pricing adjustment of Rs 8,500 crore also involving Vodafone where the tax demand could be about Rs 2,600 crore.
The high-profile transfer pricing adjustment over the purchase of Shell India’s shares by parent Shell that hit the headlines on Monday with Shell India chairperson saying Shell plans to challenge the order “strongly” also falls in the same category. Shell officials will be meeting the DG International Taxation to discuss the matter on Friday. FE
DUE PROCESS
* At present, the laws do not allow for a settlement in cases such as Vodafone
* The Budget is expected to make announcements that could pave the way for settling similar disputes especially transfer pricing cases
* There has been an 85% increase in transfer pricing allegations in 2011-12
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