Vodafone keen to pay Rs 8,000 crore in tax
21 Sep 2012 1:38 AM GMT
The UK-based telecom giant Vodafone said on Thursday that it was willing to discuss tax-related issues with the government and paying tax, which amounts to around Rs 8,000 crore, is an option provided the interest and penalty are waived.
'It is exactly an option. I don't know if its viable,' the Vodafone non-executive chairperson Analjit Singh said when asked whether it was a viable option for the telecom giant to pay Rs 8,000 crore tax if penalty and interest are waived.
After his meeting with various officials of the tax department, Singh told reporters that Vodafone was willing to discuss the tax issue with the government and did not want to get into any controversy.
'We have made our public position very clear that Vodafone is completely ready to discuss the matter. Vodafone is not a company... [that is] confrontationist [or] controversial. This is not Vodafone's business. Its business is telecom,' he said.
The Income Tax Department had raised a Rs 11,218 crore tax demand (including Rs 7,900 crore tax demand and the remaining interest) from Vodafone for its acquisition of Hutchison stake in Hutchison-Essar in 2007 through a deal in Cayman islands. But, the Supreme Court struck down the tax claim.
Following the Supreme Court judgement, the government in the Finance Bill, 2012, proposed amendments in the Income Tax Act, 1961, with retrospective effect to bring in tax net overseas mergers and acquisitions involving Indian assets.
Earlier this week, the Vodafone chief financial officer Andy Halford had said in London that the company might make a provision to cover the legal risks arising out of the tax dispute with the Indian government.
'It is exactly an option. I don't know if its viable,' the Vodafone non-executive chairperson Analjit Singh said when asked whether it was a viable option for the telecom giant to pay Rs 8,000 crore tax if penalty and interest are waived.
After his meeting with various officials of the tax department, Singh told reporters that Vodafone was willing to discuss the tax issue with the government and did not want to get into any controversy.
'We have made our public position very clear that Vodafone is completely ready to discuss the matter. Vodafone is not a company... [that is] confrontationist [or] controversial. This is not Vodafone's business. Its business is telecom,' he said.
The Income Tax Department had raised a Rs 11,218 crore tax demand (including Rs 7,900 crore tax demand and the remaining interest) from Vodafone for its acquisition of Hutchison stake in Hutchison-Essar in 2007 through a deal in Cayman islands. But, the Supreme Court struck down the tax claim.
Following the Supreme Court judgement, the government in the Finance Bill, 2012, proposed amendments in the Income Tax Act, 1961, with retrospective effect to bring in tax net overseas mergers and acquisitions involving Indian assets.
Earlier this week, the Vodafone chief financial officer Andy Halford had said in London that the company might make a provision to cover the legal risks arising out of the tax dispute with the Indian government.
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