Vodafone Group Plc plans to challenge the Indian Income Tax Department?s demand notice, wherein the operator has been asked to pay dues worth Rs 37 billion payable on the sale of its call centre business.
The Income Tax Department has sent the notice, which is the final assessment order, to Vodafone Group Plc?s Indian subsidiary Vodafone India. The case relates to the transfer pricing order regarding the sale of call centre business to Hutchison Whampoa Properties India Limited and the assignment of call options to Vodafone International Holdings BV.
Earlier, in an order dated December 2011, the Indian Income Tax Department had asked Vodafone to add Rs 85 billion to its taxable income, thus, raising the tax liability of the company. Now, the department has issued a final assessment order and a notice of demand providing the company with 30 days to comply with its order or approach appropriate authority for relief.
