Vodafone India has expressed interest in settling tax-issue with the Government of India, say news reports.
The operator is willing to settle matters related to tax issue if government considers waiving off interest and the penalty on the tax to be levied on the operator.
The matter relates to Income Tax Department of India examining the tax matters pertaining to Vodafone India, wherein the operator is liable to pay capital gain tax to the tune of $2.3 billion for a transaction which it carried out in 2007. Vodafone acquired 67 per cent stake in Indian telecom company Hutchison Essar in 2007 from Hong Kong-based Hutchison Whampoa outside India.
Earlier, the Supreme Court had struck down the tax claim. However, following the court?s verdict, the government in the Finance Bill, 2012, proposed amendments in the Income Tax Act, 1961. The amendment paved way for retrospectively bringing the overseas mergers and acquisitions involving Indian assets, into the tax purview.
