Government studying court ruling on Vodafone tax disputeJanuary 25th, 2012 - 7:00 pm ICT by IANS
New Delhi, Jan 25 (IANS) The Indian government is studying the Supreme Court verdict on UK telecom Vodafone’s $2.2 billion tax liability and will take appropriate action accordingly, Finance Minister Pranab Mukherjee said Wednesday.
“We are studying it. I can’t say whether I or the finance ministry is disappointed or happy with the judgment,” Mukherjee said in an informal chat with mediapersons at a lunch hosted by him.
In a landmark judgment, the Supreme Court last week said Indian tax authorities had no jurisdiction over transactions abroad and quashed the Income Tax department’s demand of capital gains tax from Vodafone pertaining to its majority buy of Hutchison Essar in 2007.
Income tax authorities had claimed Rs.11,218 crore ($2.2 billion) in the form of capital gains tax from the world’s largest telecom operator Vodafone.
Finance Secretary R.S. Gujral said the apex court verdict was “disappointing” for the tax authorities and it would have huge financial implications.
“Financial implications will be huge. This is linked not only to Vodafone but also related to other similar cases.”
Among other deals under the IT department’s scanner are global telecom firm AT&T;’s stake sale in Idea Cellular to Tata. The Tatas later exited Idea, but the tax liability issue is still pending before the Bombay High Court.
Another one is GE’s sale of majority stake in one of India’s biggest outsourcing firm Genpact. The $500 million transaction for 60 percent stake bought by US-based private equity companies, General Atlantic and Oak Hill Partners, was completed overseas.
- India's apex court saves Vodafone $2.2-bn tax burden (Roundup) - Jan 20, 2012
- Government seeks review of Supreme Court's Vodafone verdict (Lead) - Feb 18, 2012
- Vodafone tax verdict to impact on similar merger deals: experts - Jan 20, 2012
- Government's plea for Vodafone verdict review dismissed (Lead) - Mar 20, 2012
- Government seeks review of Supreme Court's Vodafone verdict - Feb 17, 2012
- Vodafone was told about tax liability in Hutchison deal - May 02, 2012
- Government plea on Vodafone tax verdict dismissed (Second Lead) - Mar 20, 2012
- Government to amend law to tax Vodafone-type deals - Mar 16, 2012
- Vodafone welcomes apex court's decision in tax case - Jan 20, 2012
- Supreme Court dismisses petition in Vodafone case - Mar 02, 2012
- Vodafone plea in $2.6-bn Indian tax case dismissed (Lead) - Sep 27, 2010
- Vodafone vows to defend position on tax issue - Sep 27, 2010
- Tax law change may yield Rs.40,000 crore: Government - Apr 24, 2012
- Panel set up on international taxation - May 03, 2012
- Apex court dismisses lawyer's petition in Vodafone case (Lead) - Mar 02, 2012
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