Vodafone Secures Delay in Indian Tax Demand

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Vodafone has secured a six month delay in a tax demand imposed on the company by India's Income Tax Department.

India's Income Tax Appellate Tribunal (ITAT) stayed the Rs3,700 crore tax demand pending hearings, but asked Vodafone to make a Rs200 crore deposit, and provide bank guarantees for the remainder.

The case relates to Vodafone's issue of shares of its Pune-based BPO arm Vodafone India Services to Vodafone Teleservices Mauritius in 2008, which according to the I-T Department was grossly undervalued.

Vodafone maintains that the tax demand is not valid as it was a capital receipt, and not taxable transfer pricing as the tax office claims.

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Tags: vodafone  India 

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