Vodafone Government readies Rs 13,000 crore notice for Vodafone

[Chief]

The income tax department is readying a Rs 13,000-crore demand on Vodafone after finance minister Pranab Mukherjee decided against dropping the controversial proposal to retrospectively amend the law to levy capital gains tax on merger and acquisitions involving foreign companies with assets or shares in the country.

Sources indicated that the notice is ready and will be served soon after the Budget gets presidential assent. The notice will include interest on the Rs 7,900 crore that the tax department says is due from the transaction that involved Vodafone acquiring Hutchison's 67% interest in the Indian telecom venture. They said it was never the government's intent to levy penalty but merely recover tax that was due.

http://timesofindia.indiatimes.com/...-notice-for-Vodafone/articleshow/13044949.cms

 

[Chief]

The government has not given any direction to tax authorities to reopen a tax case against Vodafone or similar cases, the junior finance minister said on Tuesday.

"The decision to reopening or not reopening a case ... is taken by the assessing officer on the basis of facts and circumstances of each case. The government has not issued any direction in this regard," S.S. Palanimanickam told lawmakers in a written reply.

http://economictimes.indiatimes.com...se-ss-palanimanickam/articleshow/13048193.cms

 

[Chief]

Tax authorities will issue a notice to British telecom major Vodafone for recovery of tax dues and penal interest soon after Finance Bill, 2012 receives Presidential assent.
Official sources said the notice under section 201 and 220 (2) of the I-T Act, which talks about simple interest at one and a half percent for every month the tax demand was raised, will also explain the retrospective amendment made by the government for taxing business deals that avoids tax in the country by showing them in a tax haven.

http://www.firstpost.com/business/notice-to-vodafone-after-presidential-assent-305644.html