Vodafone India takes tax battle to High Court
Writ filed with Bombay High Court
Vodafone
Essar, the mobile
giant’s new Indian unit, is heading for a showdown with the country’s tax-man
over a $2bn (£1bn) capital gains tax bill.
Indian newspapers have reported that Vodafone Essar has filed a writ in the
Bombay High Court in protest
against the Indian Income Tax Department’s decision to serve the capital gains
tax demand on the company.
The tax bill is a result of Vodafone’s $11bn acquisition of a majority stake
in Hutchison Essar, India’s fourth largest mobile telephone company.
Arun Sarin, vice-chairman, Vodafone Essar, told reporters following a recent
board meeting: ‘We are working with the Income-Tax Department to sort this
issue.
Neither the Essar Group, nor Vodafone, nor Vodafone Essar is liable to pay
taxes.’
Further reading:
Indian takeover lands Vodafone with $2bn tax bill
Commissioners duck Vodafone tax query
Vodafone faces investor demands for £38bn at AGM