Vodafone gets new Rs3,000 cr tax demand; court orders stay

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The Bombay High Court on Thursday stayed a new income tax demand of Rs3,000 crore on Vodafone India Services in an alleged transfer-pricing case from 2010-11.

The new case pertains to the transfer of shares by Vodafone India Services to its parent company in FY11.

Vodafone, the country’s second-largest telecom operator, is already fighting a separate Rs3,700 crore tax notice in a transfer-pricing case related to the sale of its Pune BPO arm to an offshore group entity in FY08.

The company is also in talks to resolve a capital gains tax demand from the Government, even after it won the case in the Supreme Court.

The case arose from Vodafone’s purchase of Hong Kong-based Hutchison Whampoa’s stake in Hutchison Essar for over $11 billion in 2007.

Daily Pioneer
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