UK-based telecom major Vodafone is facing tax claims and interest totalling more than Rs. 27,000 crore in India, which includes Rs. 14,200 crore for acquiring Hutchinson's stake in 2007, the company said in its annual report.
Vodafone said that its Indian subsidiary had received a letter in January last year from the authorities reminding it of the tax demand of Rs. 14,200 crore in relation to the dispute over acquisition of Hutchinson in 2007.
The report said, "Vodafone International Holdings BV (VIHBV) has not received any formal demand for taxation following the Finance Act 2012 but it did receive a letter on January 3, 2013 reminding it of the tax demand raised prior to the Indian Supreme Court's judgement and purporting to update the interest element of that demand in a total amount of Rs. 142 billion."
Besides, the UK telecom company is also facing tax liability of over 1 billion pounds. These claims are related to transfer pricing, disallowance of income tax holidays and applicability of value-added tax to SIM cards.
According to the report, "Vodafone India (VIL) and Vodafone India Services Private Limited (VISPL) are involved in a number of tax cases with total claims exceeding 1 billion pound plus interest, and penalties of up to 300% of the principal."
At current exchange rates, one billion pounds is worth Rs. 9,900 crore.
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Vodafone said that its Indian subsidiary had received a letter in January last year from the authorities reminding it of the tax demand of Rs. 14,200 crore in relation to the dispute over acquisition of Hutchinson in 2007.
The report said, "Vodafone International Holdings BV (VIHBV) has not received any formal demand for taxation following the Finance Act 2012 but it did receive a letter on January 3, 2013 reminding it of the tax demand raised prior to the Indian Supreme Court's judgement and purporting to update the interest element of that demand in a total amount of Rs. 142 billion."
Besides, the UK telecom company is also facing tax liability of over 1 billion pounds. These claims are related to transfer pricing, disallowance of income tax holidays and applicability of value-added tax to SIM cards.
According to the report, "Vodafone India (VIL) and Vodafone India Services Private Limited (VISPL) are involved in a number of tax cases with total claims exceeding 1 billion pound plus interest, and penalties of up to 300% of the principal."
At current exchange rates, one billion pounds is worth Rs. 9,900 crore.
Read More