NEW DELHI: British telecom large Vodafone on Friday mentioned it has filed an utility with Indian authorities for settlement of their retrospective tax dispute.
Vodafone additional mentioned it has “at all times been assured” that no tax is due on the corporate.
The federal government in August enacted a regulation to finish all retrospective taxation imposed on oblique switch of Indian property.
The foundations underneath the regulation search to withdraw tax calls for made utilizing a 2012 retrospective laws to tax the oblique switch of Indian property and in addition refund the quantity paid in these circumstances with none curiosity.
Requested if the corporate has filed an utility with the Indian authorities to settle the retrospective tax dispute, a Vodafone spokesperson mentioned, “We are able to affirm we’ve got filed an utility”.
The spokesperson added, “We have now at all times been assured that no tax legal responsibility arose in respect of our acquisition of the Indian enterprise, and this was borne out by the choices of the Supreme Courtroom of India and the Worldwide Courtroom of Arbitration.
On October 13, the finance ministry notified a contemporary algorithm to facilitate settlement of the retrospective tax dispute with British telecom large Vodafone Plc.
The ‘Rest of Validation (Part 119 of the Finance Act, 2012) Guidelines, 2021’, prescribed the types and circumstances for the declaration to be filed by the corporate for settling its case. Vodafone had 45 days to method the federal government for a settlement — a timeline which led to November.
Taxes have been sought from the corporate by validating an October 2010 order of the I-T division that demanded Rs 11,218 crore in taxes from the British agency over its 2007 acquisition of Hutch-Essar by a deal within the Cayman Islands.
The Supreme Courtroom had in January 2012 quashed the tax demand however the identical was sought to be revalidated by Part 119 within the Finance Act, 2012. A penalty of Rs 7,900 crore was additionally imposed on Vodafone.
With this, as many as 15 corporations towards whom retrospective tax calls for have been raised have approached the federal government to settle circumstances.
The Taxation Legal guidelines (Modification) Invoice, 2021, enacted in August, scraps the tax rule that gave the tax division energy to go 50 years again and slap capital beneficial properties levies wherever possession had modified arms abroad however enterprise property have been in India.
The 2012 laws was used to levy a cumulative of Rs 1.10 lakh crore of tax on 17 entities, together with UK telecom large Vodafone.
Final month, Cairn Vitality Plc too approached the federal government to settle retro tax circumstances and gave required undertakings indemnifying the Indian authorities towards future claims in addition to agreeing to drop any authorized proceedings anyplace on the planet.
Vodafone additional mentioned it has “at all times been assured” that no tax is due on the corporate.
The federal government in August enacted a regulation to finish all retrospective taxation imposed on oblique switch of Indian property.
The foundations underneath the regulation search to withdraw tax calls for made utilizing a 2012 retrospective laws to tax the oblique switch of Indian property and in addition refund the quantity paid in these circumstances with none curiosity.
Requested if the corporate has filed an utility with the Indian authorities to settle the retrospective tax dispute, a Vodafone spokesperson mentioned, “We are able to affirm we’ve got filed an utility”.
The spokesperson added, “We have now at all times been assured that no tax legal responsibility arose in respect of our acquisition of the Indian enterprise, and this was borne out by the choices of the Supreme Courtroom of India and the Worldwide Courtroom of Arbitration.
On October 13, the finance ministry notified a contemporary algorithm to facilitate settlement of the retrospective tax dispute with British telecom large Vodafone Plc.
The ‘Rest of Validation (Part 119 of the Finance Act, 2012) Guidelines, 2021’, prescribed the types and circumstances for the declaration to be filed by the corporate for settling its case. Vodafone had 45 days to method the federal government for a settlement — a timeline which led to November.
Taxes have been sought from the corporate by validating an October 2010 order of the I-T division that demanded Rs 11,218 crore in taxes from the British agency over its 2007 acquisition of Hutch-Essar by a deal within the Cayman Islands.
The Supreme Courtroom had in January 2012 quashed the tax demand however the identical was sought to be revalidated by Part 119 within the Finance Act, 2012. A penalty of Rs 7,900 crore was additionally imposed on Vodafone.
With this, as many as 15 corporations towards whom retrospective tax calls for have been raised have approached the federal government to settle circumstances.
The Taxation Legal guidelines (Modification) Invoice, 2021, enacted in August, scraps the tax rule that gave the tax division energy to go 50 years again and slap capital beneficial properties levies wherever possession had modified arms abroad however enterprise property have been in India.
The 2012 laws was used to levy a cumulative of Rs 1.10 lakh crore of tax on 17 entities, together with UK telecom large Vodafone.
Final month, Cairn Vitality Plc too approached the federal government to settle retro tax circumstances and gave required undertakings indemnifying the Indian authorities towards future claims in addition to agreeing to drop any authorized proceedings anyplace on the planet.
Supply: Times of India