SC directs Vodafone to deposit 2,500 cr, bank guarantee of 8,500 crNovember 15th, 2010 - 5:36 pm ICT by ANI
New Delhi, Nov.15 (ANI): The Supreme Court on Monday directed telecom company Vodafone to deposit rupees 2,500 crore in three weeks and a bank guarantee of rupees 8500 crore in eight weeks.
The Supreme Court’s ruling came out in the ongoing case in which the UK based telecom giant challenged capital gains tax of rupees 11,000 crore from its acquisition of Hutchison shares.
The bench headed by Chief Justice S.H. Kapadia, justice K.S. Radhakrishnan and justice Swatanter Kumar, also held that if the case goes in favour of Vodafone then the government will have to return the amount to the telecom giant along with interest.
The apex court also directed the Director General of international taxation to file an undertaking before the court that the government would refund the amount along with the interest to Vodafone if the UK based telecom giant succeeds in the case.
The apex court would start its final hearing in this matter from February 5, 2011.
Earlier on October 25,the Supreme Court adjourned the hearing after Vodafone sought time to go through its tax notice sent by the IT department and to file its reply.
Following the instructions of the apex court, the Tax Deducted at Source (TDS) officials of the Income Tax department had fixed Vodafone’s liability on the overseas transaction.
The department held Vodafone liable for not deducting tax at source on capital gains accruing to Hutchison and claimed over rupees 11,000 crore in tax and as a penalty on the 2007 deal.
Hutchison’s telecom business in India comprised a substantial chunk of its overall business and the deal enabled Vodafone to enter the Indian market in a big way.( (ANI)
- Supreme Court asks Vodafone to deposit Rs.2,500 crore (Lead) - Nov 15, 2010
- India's apex court saves Vodafone $2.2-bn tax burden (Roundup) - Jan 20, 2012
- Apex court adjourns Vodafone plea on income tax order (Lead) - Oct 25, 2010
- Nothing colourable in takeover, Vodafone tells apex court (Lead) - Aug 03, 2011
- Government seeks review of Supreme Court's Vodafone verdict - Feb 17, 2012
- (Vodafone willing to discuss tax demand (Lead, superseding previous story) - Sep 21, 2012
- Government seeks review of Supreme Court's Vodafone verdict (Lead) - Feb 18, 2012
- Government plea on Vodafone tax verdict dismissed (Second Lead) - Mar 20, 2012
- Government's plea for Vodafone verdict review dismissed (Lead) - Mar 20, 2012
- Government studying court ruling on Vodafone tax dispute - Jan 25, 2012
- Vodafone was told about tax liability in Hutchison deal - May 02, 2012
- Supreme Court says Vodafone must pay up in Rs. 12,000 crore tax case - Sep 27, 2010
- Vodafone confident of no tax liability in Essar buyout (Lead) - Nov 15, 2010
- Apex court rejects Vodafone plea in $2.6 bn tax case - Sep 27, 2010
- I-T authorities can dissect any takeover deal: Apex court - Aug 04, 2011
Tags: apex, apex court, bank guarantee, capital gains tax, chief justice, crore, favour, hutchison, income tax department, international taxation, kapadia, New Delhi, rupees, s radhakrishnan, substantial chunk, tax deducted at source, telecom business, telecom company, telecom giant, vodafone