The Income Tax department has asked Vodafone to pay Rs 112.18 billion as tax on its 2007 purchase of Hutchison Whampoa?s mobile business in the country.
The tax demand is to be paid within 30 days of the receipt of the notice of demand, the department said in a statement.
The Supreme Court is expected to set a date on 25 October for hearing Vodafone’s appeal challenging a lower court ruling that Indian tax authorities had jurisdiction over tax bills in cross-border deals.
“Vodafone strongly disagrees with the tax calculation,” the company said in a statement. “The tax authority is attempting to interpret Indian law as it has never been interpreted for the past 50 years, and this interpretation also goes against internationally recognised tax norms.”
