The document summarizes the Vodafone tax controversy case in India. It provides background on the case where Vodafone International Holdings B.V acquired Hutchison Essar through a transaction outside of India. The Indian tax authorities argued this was taxable in India under section 9, while Vodafone contested jurisdiction. The Supreme Court ultimately ruled in favor of Vodafone, resulting in a 12,000 crore tax benefit and providing clarification on the taxation of non-residents.
VODAFONE TAX CASE | VODAFONE HUTCH CASE | VODAFONE TAX CASE STUDYSonalS15
The Vodafone Tax Case is one of the most controversial Tax dispute in the history of Indian Income Tax Law.
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VODAFONE TAX CASE | VODAFONE HUTCH CASE | VODAFONE TAX CASE STUDYSonalS15
The Vodafone Tax Case is one of the most controversial Tax dispute in the history of Indian Income Tax Law.
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SCRAPPING OF RETRO TAX PROVISIONS : A REVIVAL OF OVERSEAS INTEREST IN INDIADVSResearchFoundatio
Key Takeaways:
- Scrapping of Restrospective effect of Taxation
- Indirect transfer of assets not taxable before 28th May 2012
- Vodafone case analysis
- Draft notification to implement the amendment
SEBI(LODR) Regulations, 2015- Obligations on listing of specified securities-...DVSResearchFoundatio
Key Takeaways:
- Meetings of shareholders and their voting
- Change in name of the listed entity
- Dissemination of information on website and in newspapers
Key Takeaways:
- Facts of the case
- Issues and Orders
- Contention of the parties
- Observations of Honourable Supreme Court
- Conclusion and way forward
ALLOWABILITY OF OUTSTANDING INTEREST CONVERTED INTO DEBENTURES AS AN EXPENSE ...DVSResearchFoundatio
Key Takeaways:
- Facts and issues of the case
- Rationale behind the section
- Ruling of lower jurisdiction authorities
- Rival submissions before the Honourable Supreme Court
- Observations and final rulings of Honourable Supreme Court
- Way Forward
Unravelling the income tax annual information returnAmeet Patel
The Annual Information Return that the income-tax department of India gets from various agencies contains a treasure trove of information for a tax officer to work upon. All tax payers should be aware of this and also of how the AIR affects their tax assessments. This presentation takes you through the AIR and also the reports of the Central Information Branch (CIB).
I have also dealt with the tax aspects of the recent demonetisation of Rs. 500 & Rs. 1,000 currency notes by the Govt of India.
Inbound investment re-organisation - Indian Tax and regulatory issuesAjay Kumar
Foreign companies keep on reorganizing their investments. Under the Indian tax laws, transfer of shares of an Indian company can trigger taxable gains even when the transfer is within the same group. This is subject to certain exemptions.
Dear Patron,
Here we are with the Thirty forth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
Objectives & Agenda :
Cross-border mergers and acquisitions have rapidly increased reshaping the industrial structure at the international level. A cross-border merger means any merger, amalgamation or arrangement between an Indian company and a Foreign Company in accordance with the Companies Act, 2013. The Webinar will cover the provisions in the Companies Act, 2013, FEMA Regulations and Income-tax implications relevant to Cross Border Mergers. Additionally we will also look relevant statistics.
Key Takeaways
Analysis of definitions in Income tax act and treaties
Taxability under the act and treaties
IRoyalty vs. Business income
Illustrative Cases
Judicial Precedents
The ISG Index™ provides a quarterly review of the latest sourcing industry data and trends for clients, service providers, analysts and the media. For more than a decade, it has been the authoritative source for marketplace intelligence related to outsourcing transaction structures and terms, industry adoption, geographic prevalence and service provider performance.
SCRAPPING OF RETRO TAX PROVISIONS : A REVIVAL OF OVERSEAS INTEREST IN INDIADVSResearchFoundatio
Key Takeaways:
- Scrapping of Restrospective effect of Taxation
- Indirect transfer of assets not taxable before 28th May 2012
- Vodafone case analysis
- Draft notification to implement the amendment
SEBI(LODR) Regulations, 2015- Obligations on listing of specified securities-...DVSResearchFoundatio
Key Takeaways:
- Meetings of shareholders and their voting
- Change in name of the listed entity
- Dissemination of information on website and in newspapers
Key Takeaways:
- Facts of the case
- Issues and Orders
- Contention of the parties
- Observations of Honourable Supreme Court
- Conclusion and way forward
ALLOWABILITY OF OUTSTANDING INTEREST CONVERTED INTO DEBENTURES AS AN EXPENSE ...DVSResearchFoundatio
Key Takeaways:
- Facts and issues of the case
- Rationale behind the section
- Ruling of lower jurisdiction authorities
- Rival submissions before the Honourable Supreme Court
- Observations and final rulings of Honourable Supreme Court
- Way Forward
Unravelling the income tax annual information returnAmeet Patel
The Annual Information Return that the income-tax department of India gets from various agencies contains a treasure trove of information for a tax officer to work upon. All tax payers should be aware of this and also of how the AIR affects their tax assessments. This presentation takes you through the AIR and also the reports of the Central Information Branch (CIB).
I have also dealt with the tax aspects of the recent demonetisation of Rs. 500 & Rs. 1,000 currency notes by the Govt of India.
Inbound investment re-organisation - Indian Tax and regulatory issuesAjay Kumar
Foreign companies keep on reorganizing their investments. Under the Indian tax laws, transfer of shares of an Indian company can trigger taxable gains even when the transfer is within the same group. This is subject to certain exemptions.
Dear Patron,
Here we are with the Thirty forth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
Objectives & Agenda :
Cross-border mergers and acquisitions have rapidly increased reshaping the industrial structure at the international level. A cross-border merger means any merger, amalgamation or arrangement between an Indian company and a Foreign Company in accordance with the Companies Act, 2013. The Webinar will cover the provisions in the Companies Act, 2013, FEMA Regulations and Income-tax implications relevant to Cross Border Mergers. Additionally we will also look relevant statistics.
Key Takeaways
Analysis of definitions in Income tax act and treaties
Taxability under the act and treaties
IRoyalty vs. Business income
Illustrative Cases
Judicial Precedents
The ISG Index™ provides a quarterly review of the latest sourcing industry data and trends for clients, service providers, analysts and the media. For more than a decade, it has been the authoritative source for marketplace intelligence related to outsourcing transaction structures and terms, industry adoption, geographic prevalence and service provider performance.
Presentació de power point amb els mites adaptats de l’obra Metamorfosis d’Ovidi per part de Biblioteca Teide en “Narracions de mites clàssics”. Conté únicament un resum esquemàtic i una imatge representativa de cadascun dels mites inclosos en la tercera part del llibre: III. Cossos transformats en pedres. Aquest és un treball de l’àrea educativa de llatí dirigit pel professor Xavier Blàzquez, de l’ institut IES Escola Industrial Sabadell, per a l’alumnat de primer de batxillerat.
Autors: Irene Serra, Quim Ripoll i Marta Corella.
James Earl Hamilton Marsden - Ancestorsmarshamilton
Hamilton was married firstly, c.1490, to Elizabeth Home, daughter of Alexander Home, 2nd Lord Home. The marriage was dissolved in 1506, when it was found that her first husband Thomas Hay, a son of John Hay, 1st Lord Hay of Yester, was still alive at the time of the wedding. In November 1516 Hamilton married Janet Bethune of Easter Wemyss, daughter of Sir David Bethune of Creich, and widow of Sir Robert Livingstone of Easter Wemyss, who had been killed in the Battle of Flodden Field. In November 1504 Hamilton had been granted a divorce from Elizabeth Home on the grounds that she had previously been married to Thomas Hay. Hay had apparently left the country and was thought to be dead when Hamilton married Home in or before 1490, but in fact he did not die until 1491 or later.
James Earl Hamilton Marsden - Ancestorsmarshamilton
Hamilton was married firstly, c.1490, to Elizabeth Home, daughter of Alexander Home, 2nd Lord Home. The marriage was dissolved in 1506, when it was found that her first husband Thomas Hay, a son of John Hay, 1st Lord Hay of Yester, was still alive at the time of the wedding. In November 1516 Hamilton married Janet Bethune of Easter Wemyss, daughter of Sir David Bethune of Creich, and widow of Sir Robert Livingstone of Easter Wemyss, who had been killed in the Battle of Flodden Field. In November 1504 Hamilton had been granted a divorce from Elizabeth Home on the grounds that she had previously been married to Thomas Hay. Hay had apparently left the country and was thought to be dead when Hamilton married Home in or before 1490, but in fact he did not die until 1491 or later.
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For more information, Please visit http://xtreme-weight-loss-diet.blogspot.com/
The twenty fourth issue of our monthly tax newsletter – Tax Inform, is out. Through these newsletters, we provide a compilation of key tax-related case laws, circulars, notifications, etc. issued by the authorities in the previous month, impacting entities and individuals operating in India.
- The Asian landscape - uncertainty in the near term
- Structuring considerations
- Risk allocation amongst parties
Prabhu Narasimhan, Counsel, White & Case
Peita Menton, Partner, White & Case
TransPrice Times 15 December 2015 - 12 January 2016Sangesh Sase
Dear Readers,
Please find a link to the first edition of TransPrice Times for the new year 2016.
With the onset of holiday season, we saw some important judgement being pronounced by courts which are summarized in the alert.
Further, a long awaited guidance from the CBDT on the change in the residential status law which included the a global concept of 'Place of Effective Management' ('POEM') is also covered in the alert.
We hope you find this newsletter useful and look forward to your feedback and suggestions. You can write to us at akshaykenkre@transprice.in
Happy Reading!!!
TransPrice Times 15 December 2015 - 12 January 2016Akshay KENKRE
Dear Readers,
Please find a link to the first edition of TransPrice Times for the new year 2016.
With the onset of holiday season, we saw some important judgement being pronounced by courts which are summarized in the alert.
Further, a long awaited guidance from the CBDT on the change in the residential status law which included the a global concept of 'Place of Effective Management' ('POEM') is also covered in the alert.
We hope you find this newsletter useful and look forward to your feedback and suggestions. You can write to us at akshaykenkre@transprice.in
Happy Reading!!!
Here we are with the Thirty fifth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Thanks and regards,
Knowledge Management Team
Here we are with the Thirtieth successive issue of our monthly ‘Missive’.
We trust you will enjoy reading this Missive, even while soaking in the contents. We would very much appreciate your feedback which consistently helps us in improving and upgrading the contents.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
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HR recruiter services offer top talents to companies according to their specific needs. They handle all recruitment tasks from job posting to onboarding and help companies concentrate on their business growth. With their expertise and years of experience, they streamline the hiring process and save time and resources for the company.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
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3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
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RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
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Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
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3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
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1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
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• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
2. INTRODUCTION
• One of the most controversial areas in taxation
under the Indian Income Tax Act, 1961 in recent
days has been the Vodafone tax controversy.
• Several important questions of law in the area of
taxation of non-residents – pertaining to both
chargeability and machinery provisions – are at
issue in the Vodafone controversy.
• The case provides a useful backdrop for anchoring
the theoretical arguments on the taxation of non-
residents.
3. Vodafone Controversy:
An Introduction
• The Supreme Court decided the long awaited tax
controversy between Vodafone International Holdings
B.V (VIH) and Tax Authorities in India.
• The Judgement led VIH benefited with Rs. 12,000 Cr.
The Judgement is a landmark judgement and has laid the
guidelines for deciding the taxability of income under
some of the controversial provisions of the Income Tax
Act, 1961 such as interpretation of Section 9 in the Indian
Tax legislations.
• However, the facts and circumstances play a decisive
role.
• In this case, the motley assortment of the facts and
circumstances are jumbled to the extent that it was really
hard to decide whether the income is taxable under the
Act or not.
4. HISTORY
A non-resident company, Hutchinson International, held
67% shares in an Indian company named Hutchinson-
Essar.
This Indian company was a joint venture between
Hutchinson International and Essar.
The 67% shareholding in the Indian company was not a
direct shareholding. Hutchinson held 100% shares of a
foreign company, which in turn held 67% shares in the
Indian company.
Hutchinson transferred this shareholding of the foreign
company to Vodafone. Thus, indirectly, the interest in the
67% shareholding was also transferred to Vodafone
The question which arose was, whether the income
accruing to Hutchinson as a result of the transaction could
be deemed arise in India by virtue of section 9 of the Act.
5.
6. • Under Section 9, income received through the transfer of a
capital asset „situate in India‟ is taxable in India.
• The shares of a Mauritius company are situate in the
Mauritius, not in India. Hence, the Revenue‟s argument is
that the transaction is not a sale of shares simpliciter, but
is (in substance) the sale of a capital asset situate in India.
• The two main justifications advanced by the Revenue are
based on lifting of the corporate veil over the Mauritius
company on principles of corporate law; and over the
application of general substance-over-form doctrines used
in taxation.
• The Indian Income Tax Department issued a show cause
notice to Vodafone asking it to show cause as to why action
should not be taken against it for failing to deduct tax at
source under Section 195 of the Act while making payment
of the consideration to Hutch.
7. • This show cause notice was challenged by Vodafone in a
writ petition before the Bombay High Court under Article
226 of the Constitution of India. The issues which arose
were, inter alia:
• (a) Whether the transfer of the shares of a foreign company
by a non-resident to a non-resident results in income being
deemed to accrue or arise in India under Section 9 by
virtue of the fact that the foreign company in turn held
shares in an Indian company effectively resulting in
controlling interest in an Indian company being
transferred?
• (b) Whether, assuming that the income could be said to
have deemed to accrue or arise in India, there was any
liability on Vodafone – the buyer/payer – to deduct tax at
source? In other words, does Section 195 have an extra-
territorial application so as to cast an obligation on
Vodafone to deduct tax at source?
8. Statement of Facts
• The matter is in relation to the acquisition of entire share
capital of CGP Investment (Holdings) Ltd. (CGP) by VIH.
According to the revenue authorities, VIH acquired 67% of
the controlling interest in HEL.
• On the other hand, VIH agreed to acquire the companies
that control the 67% of the interests but not the controlling
interests.
• The revenue authorities issued a show cause notice to VIH
on the grounds that VIH failed to withhold tax for
acquiring the said stake, resulting in the capital gains
which HTIL Hutchinson Telecommunications
International Limited, an Indian Company from Cayman
Islands (HTIL) earned from the transfer of shares of CGP.
9. Contentions of the VIH
• VIH filed a writ petition in the Bombay High Court
challenging the show cause notice of the revenue
authorities.
• The appellant raised the question on the jurisdiction of
the revenue authorities over the transactions, as the
transfer of the share was on a foreign land, between the
companies incorporated in other countries and the subject
matter, i.e., the shares being transferred, are not the
rights, for e.g. the right to vote, right to call for and attend
general meeting, etc.
• There is no „look-through‟ provision in the Indian Tax
Legislations. The „look-through‟ provision imposes tax on
the gains arising out of a transfer of share outside the
country if it results in the passing of control over a
company which holds specified assets/property in the
country. There is no such provision in Section 9 of the Act.
10. Contentions of the Revenue authorities
• The revenue authorities contended that the transfer
is not mere transfer of shares in CGP but also of
composite rights of HTIL. There is also a „look
through‟ provision in the Section 9 of the Act and
the gains from the sale of CGP shares and rights are
taxable in India.
11. Observations of the High Court
• The Bombay High Court observed that the shares are a
bundle of indivisible rights that cannot be separately
transferred. These rights are inseparable from the
ownership of the shares.
• Vodafone purchased these rights from HTIL which
constitute the „capital assets‟ under section 2 (14) of the
Act. This income is taxable in India under Section 9 (1) of
the Act.
• The Assessing Officer was asked to do this apportionment
of the income between the income arising or deemed to
arise directly or indirectly in India and the income that lies
outside India.
• The Vodafone directly or indirectly, through its different
agreements, entered into a nexus with the Indian
jurisdiction. This made the appellant liable to pay interest
under section 195 of the Act.
12. Appeal before the Supreme Court
• VIH aggrieved by the decision of the Bombay High
Court moved to the Supreme Court challenging the
decision of the High Court. While delivering the
decision following observations were made by the
Supreme Court:
• First revenue has to be ascertained based on the facts
and circumstances that the transaction is sham or tax
avoiding before applying the principle of piercing of
corporate veil.
• Section 9 (1) (i) is not a „look through‟. For the fair
interpretation of the „lookthrough‟ provision, it has to
be expressly provided in the statue or treaty, which is
not in any of the Act or treaty in current situation.
13. • The structure of VIH or HTIL is not tax avoiding by
nature. It is clear from the facts that the appellant has
paid income tax ranging from Rs. 3 crore to 250 crore
p.a. during the period of 2002 to 2007. Hence, it cannot
be said that VIH is a short-term investor.
• It is in Cayman Island where the transfer of CGP shares
occurs and the register of the members of CGP is being
maintained; and not in India. Hence, the revenue
authority argument that the situs of CGP shares is
situated in India is not admissible.
• Section 195 of the Act does not hold well in current case
as the transaction is of „outright sale‟ between two non-
residents of a capital asset outside India.
14. Conclusion by the Supreme Court
• The three member bench of the
Supreme Court, viz, S.H.
Kapadia, C.J Swatender Kumar
and K.S. Radhkrishnan, headed
by Justice Kapadia delivered the
decision in the favour of Vodafone
• S.C gives order to Bombay High
Court to imposition of capital
punishment of 12,000 Crore.
15. VODAFONE’S INDIAN ODYSSY KEY
MILESTONE
2007
February;-
Vodafone buys 67% in HUTCHISAN
ESSAR for $11.5 billion, company
renamed VODAFONE ESSAR.
April;-
FIBP clears deal subject to condition that
minority shareholders can sell only the
resident Indians.
September;-
Income tax department slaps Vodafone
with a tax demand of 11,000 Crore . Says
asset for which deal for done is in India.
October;-
Vodafone goes to Bombay High Court.
Saying “it was a share transfer carried
outside India
16. 2008
February ;-
Government amend section 201
of IT Act, makes withholding
tax mandatory with
retrospective effect
December;-
HC dismisses Vodafone‟s
petition, says that department
has right to investigate the
case, Vodafone appeals to
Supreme court
17. 2009
January;-
S C dismisses Vodafone‟s appeal, leaves
decision on jurisdiction of deal to the I
t department. Also refers cash back to
Bombay high court.
October;-
I.T department issues a new Showcause
notice, minority shareholders Analjit
Singh & Asim Ghosh want to sell stake
to Vodafone
December;-
FIPB approves stake sales by Singh &
Ghosh.
18. 2010
January;-
Vodafone replies to I.T notice saying I.T department
doesn't have jurisdiction
April;-
Vodafone reaches 100 m customer in India
May;-
Price war in India cause Vodafone group plc to written
down value of Vodafone Essar by $2.3 Billion (Rs.15157
cr.)
Vodafone pays 11618cr for 3g spectrum in 9 circles.
June;-
Vodafone files petition in Bombay h c challenging I.T
department‟s order that claims jurisdiction
September;-
High court says Vodafone must pay capital gains tax on
the deal. Vodafone appeals to S C.
Sc ask I.T department to qualify tax liability.
November;-
S C ask Vodafone to deposit Rs. 2500 Cr. and provide
bank Aurantees of Rs. 8500cr pending final verdict.
19. 2011
March;-
Vodafone recieves tax notice from I.T department
asking it to explain why it should not be Laible for
penalties of up to 100% of tax found due.
May;-
Vodafone makes 1st ever profit in India of 15 m
Euros in 2010-11
April;-
S C says I.T department from enforcing any liability
until October of final hearing
August;-
S C begins hearing the case.
Vodafone sells 5.5% of India business to Piramal
healthcare for $640 million(around Rs. 2890 cr.)
to comply with FDI rules
21. Voda tax case:
Pranab defends amendment of IT Act
• Mar 31, 2012
• Statement made by Finance Minister
Pranab Mukherjee in Kolkata;-
• “We came to the conclusion that we
will not be able to tax on Indian assets
purchased outside the country,”
• “We will have to decide whether India
will be a no tax country or India will
tax…If the answer is yes that it will be
taxed, then whether to be taxed in
India or at source of the company.”
22. IMPACT
• The instant Judgement would help to resolve several
contentious issues regarding the scope of Indian Tax
legislation
• The SC ruling has caused a deep hole in the kitty of
the tax department to the tune of Rs 11,000 crore.
• The slippage in direct tax revenue collection and
increased subsidies has pushed the fiscal deficit to
5.9 percent of the Gross Domestic Product in the
Revised Estimates for 2011-12.
• Consequently, the direct tax collection has fallen
short by Rs 32,000 crore of the 2011-12 Budget
estimates.