In this case study, i am required to examine the company vodafone in the context of its merger to form vodafone india i am required to consider the merger in light of the suit brought against vodafone india by the government of india to collect about $26 billion in taxes that india asserts are owed to it as a result of the. It's a landmark case of indian judicial system i hope at least you will get to know the summary of this case through this article, which is equally important for practical knowledge of subject matter also facts of the case:'hutchison ( hongkong)' is a non resident having no tax implications in india 'cayman. Vodafone was embroiled in a $25 billion tax dispute over its purchase of hutchison essar telecom services in april 2007 the transaction involved purchase of assets of an indian company, and therefore the transaction, or part thereof was liable. Two type of taxes what is capital gains tax who pays the capital gains tax players in the vodafone case timeline of events december 2006, hong kong february 2007, london march 2007 gang up the best tax-lawyers, study the judgement and file a review petition in supreme court again. Vodafone plc is learning that when it comes to dogged persistence, its popular pug is not a patch on the indian taxman last week, the government announced that it was giving up its 'conciliation talks' with the global giant and was going ahead with its earlier tax demand relating to the hutch-vodafone deal. The i-t department has issued vodafone a reminder over its rs 14,200-crore tax demand and threatened to seize assets in the case of non-payment, a move the uk firm said shows disconnect with prime minister narendra modi's promise of a tax-friendly environment the department on february 4 sent a.
The government has proposed an amendment to the income tax act from april 1, 1962 that would allow it to tax transactions like vodafone's acquisition of hutc. India inc has been surging ahead audaciously with the support of its information technology developments with its repertoire of resources global players have been eying the indian market, owing to immense opportunities that the continent provides both in terms of expansion and profit investment patterns in india have. Vodafone international holdings bv, a company incorporated under the provisions of the companies act vs union of india (uoi), ministry of finance and asstt director of income tax (international taxation) equivalent citation: 2009(4 )bomcr258, (2008)220ctr(bom)649, this recent case which has.
Vodafone holding is ae (associate enterprise) of vodafone india for the purpose of transfer pricing provisions under chapter x of income tax act 1961 vodafone india is engaged in providing service in relation to telecommunication in india fact of case – during the ay 2009-10, vodafone india issue. Executive summary this tax alert summarizes the decision on 10 october 2014 of the bombay high court (hc) in the case of vodafone india services private limited1 (taxpayer) the issue before the hc was whether the indian transfer pricing (tp) provisions are applicable to the taxpayer's issue of.
Case law - vodafone case vs income tax department complete analysis hi friends here in this article you can find all details related to vodafone case like - details of vodafone case, details of tax authority's contention, details for bombay high court decision, details for supreme court. The bombay high court has set aside an order of income tax appellate tribunal (itat) which said the it department had powers to raise tax demand on the company in a rs 8,500 crore transfer pricing case the move has come as a major relief to the telecom company here are key facts about the case. Vodafone international holdings bv vs union of india & another and absolved vodafone of any tax liability under their acquisition of the hutch brand in india background: 1 through the court observed that in this case, the last sub- clause of the aforementioned section 9(1)(i) referring to income.