Vodafone Secures Delay in Indian Tax Demand
Published on: 28th Dec 2013
By: Ian Mansfield
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.