According to news reports, Vodafone India?s minority shareholders will have to pay 20 per cent capital gains tax after selling their stake to the operators? UK-based promoter company, Vodafone Plc.
The tax on gains made from financial transactions is levied at 20 per cent. Currently, Piramal Group holds 11 per cent stake in Vodafone India, while the remaining 25 per cent interest is with Analjit Singh, chairman of Vodafone India (6.2 per cent) and IDFC and other investors (18.8 per cent).
Earlier, Vodafone Plc had approached the Foreign Investment Promotion Board?s (FIPB) seeking its approval to raise its stake in Vodafone India from 64 per cent to 100 per at an estimated cost of Rs 101.41 billion. In its communication to the Foreign Investment Promotion Board, Vodafone Plc has valued Vodafone India at Rs 284.699 billion as compared to Rs 546.727 billion in February 2012, when Piramal Enterprises had paid Rs 30.07 billion for a 5.5 per cent stake in the company.
