Vodafone transfer pricing: AG asks I-T Dept not to appeal against HC order
27 Nov 2014 12:24 AM GMT
Attorney General Mukul Rohatgi has asked the Income Tax Department to desist from filing appeal against the Bombay High Court ruling that Vodafone is not liable to pay an income tax demand of Rs 3,200 crore in a case relating to transfer pricing.
‘I have asked the income department to accept the judgement of the High Court. I have said in
my opinion don't file an appeal,’ Rohatgi said. The Attorney General said he was in agreement with the view taken by the Central Board of Direct Taxes Chairman in the matter. ‘I have concurred with the view of the CBDT chairman,’ Rohatgi said.
His opinion comes in the backdrop of reports that the income tax department was keen on challenging the 10 October judgement of the High Court verdict.
The High Court had given a big relief to the UK-based mobile service provider by ruling that it is not liable to pay an income tax demand of Rs 3,200 crore in a case relating to transfer pricing.
The I-T Department had asked the company to pay additional income tax alleging that it had undervalued its shares in the subsidiary Vodafone India Services while transferring them to the parent company in Britain. The transaction took place in Financial year 2010.
Transfer pricing is the practice of arm's length pricing for transactions between Group companies based in different countries to ensure a fair price —one that would have been charged to an unrelated party — is levied.
‘I have asked the income department to accept the judgement of the High Court. I have said in
my opinion don't file an appeal,’ Rohatgi said. The Attorney General said he was in agreement with the view taken by the Central Board of Direct Taxes Chairman in the matter. ‘I have concurred with the view of the CBDT chairman,’ Rohatgi said.
His opinion comes in the backdrop of reports that the income tax department was keen on challenging the 10 October judgement of the High Court verdict.
The High Court had given a big relief to the UK-based mobile service provider by ruling that it is not liable to pay an income tax demand of Rs 3,200 crore in a case relating to transfer pricing.
The I-T Department had asked the company to pay additional income tax alleging that it had undervalued its shares in the subsidiary Vodafone India Services while transferring them to the parent company in Britain. The transaction took place in Financial year 2010.
Transfer pricing is the practice of arm's length pricing for transactions between Group companies based in different countries to ensure a fair price —one that would have been charged to an unrelated party — is levied.
Next Story
