Vodafone to challenge tax dept in transfer pricing case
While the income tax department had claimed that it had jurisdiction to tax Vodafone-Hutchison deal, the Supreme Court upheld that the tax authorities had no jurisdiction over the deal, bringing in a huge relief to the company.
However, the government in Budget 2012-13, changed the tax rules retrospectively to bring such deals under the tax net.
After indicating its willingness to negotiate with the government, Vodafone has started meeting the senior government officials to resolve the issue. Last week, Vodafone India non-executive chairman Analjit Singh met revenue secretary Sumit Bose regarding the matter.
According to sources, the government may bring in certain provisions including waiving off penalty and interest where retrospective rules are applied, to soften the blow of the amendment.
Vodafone India revenue up 10%
Boosted by strong growth in voice minutes, Vodafone India’s revenue grew by about 10 per cent to £1.1 billion (about Rs 9,388.40 crore) in the quarter ended
December 31, 2012.
The company had reported a revenue of £1.02 billion in the corresponding quarter last year, Vodafone, the UK-based parent of Vodafone India, said in a statement. Service revenue increased by 9.9 per cent, driven by strong growth in mobile voice minutes and a stable competitive environment, it added.
Vodafone’s subscriber base stood at 147.47 million. Data revenue grew by 23.8 per cent driven by an increase in sales an increase in 2G data pricing.
Be the first to comment.