Delinquent UK MNC Vodafone makes no tax provisions for India
18 May 2016 11:11 PM GMT
"Should a further demand for taxation be received by VIHBV or any member of the Group as a result of the retrospective legislation, we believe it is probable that we will be able to make a successful claim under the Dutch BIT and/or UK BIT," Vodafone said.
 It added that the company did not carry a provision for this litigation or in respect of the retrospective legislation as on March 31, 2016, or previous reporting dates.
Vodafone had disputed the tax order over its acquisition of 67 per cent stake in Hutchison, now called Vodafone India, arguing that no tax was due as the transaction was conducted offshore. But the income tax department, taking refuge under the retrospective amendment in 2012, contends that tax is due and has sent notices to the company.
"On February 4, 2016, Vodafone International Holdings BV (VIHBV) received a reminder of an outstanding tax demand of Rs 221 billion. The latest reminder threatens enforcement action if the demand is not satisfied," Vodafone said in a statement.Â
The statement said VIHBV served its notice of arbitration under the Dutch BIT on April 17, 2014, formally commencing the Dutch arbitration proceedings. In March, Vodafone had moved ICJ after arbitrators appointed by it and the government of India failed to reach a consensus on selection of a neutral/presiding judge of the three-member panel.Â
The president of the International Court of Justice will now appoint the third arbitrator. On June 15, 2015, Vodafone Group and Vodafone Consolidated Holdings served a trigger notice on the Indian government under the UK BIT in respect of retrospective tax claims under the FinanceÂ
Act, 2012.
Vodafone india rings in 4% rise in FY16 profit to `13,115 crore
Mumbai: Telecom major Vodafone India on Tuesday reported a tepid 4.1 per cent rise in pre-tax profit at Rs 13,115 crore for 2015-16, helped by a 45 per cent surge in data revenue. The British telco, which is planning to launch a share sale in the country, had reported earnings before interest, taxes, depreciation and amortisation of Rs 12,598 crore in the year-ago period.Â
Revenue rose by 5 per cent to Rs 44,303 crore and Managing Director and Chief Executive Sunil Sood attributed this to regulatory actions like drop in call termination rates, cut in national roaming fees and service tax hike. Revenue growth was helped largely by data, which posted a 45 per cent jump to Rs 8,263 crore and now occupy over 19 per cent of the overall revenue pie.Â
Next Story
