Vodafone India H1 revenue jumps 13.3%

Nov 14 2012, 21:49 IST
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SummaryTelecom major Vodafone India today said its revenue has grown to Rs 17,580 cr.

demand (including Rs 7,900 crore tax demand and the remaining interest) from Vodafone for its acquisition of Hutchison stake in Hutchison-Essar in 2007 through a deal in Cayman islands.

But the Supreme Court struck down the tax claim.

Following the Supreme Court judgement, the government in the Finance Bill, 2012 proposed amendments to the Income-tax Act, 1961, with retrospective effect to bring under tax net overseas mergers and acquisitions involving Indian assets.

In April 2012, a Dutch Subsidiary of UK-based Vodafone served a 'dispute notice' to the Indian government, threatening international arbitration under the Bilateral Investment Treaty (BIT).

The Group said it is also confident of making a successful claim under the Dutch-India Bilateral Investment Treaty in case it receives any further tax demands.

"Should further demand for taxation be received by VIHBV or any member of the Group as a result of the new retrospective legislation, the Group believes it is probable that it will be able to make a successful claim under the BIT, which will not result in an outflow of economic benefits from the Group," it said.

The Indian government had commissioned a committee of experts (Shome committee) to examine and make recommendations for the Finance Act 2012, including the retrospective taxation.

The Shome committee published its draft report on October 10 and concluded that tax legislation in the Finance Act 2012 should only be applied prospectively or, if applied retrospectively, only a seller who made a gain should be liable, in that case without any liability for interest or

penalties.

However, the final report is yet to be submitted, the filing said.

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