The Supreme Court has ordered Vodafone to deposit Rs 25 billion within three weeks in relation to the $2.5 billion tax dispute, according to news reports. The Supreme Court has also fixed 05 February 2011 as the final date of hearing.
The operator has also been directed to make a bank guarantee worth Rs 85 billion within eight weeks. Vodafone, fighting a tax bill in India over its 2007 purchase of Hutchison Whampoa?s mobile business in the country, had appealed to the Supreme Court challenging a lower court order that Indian tax authorities had jurisdiction over tax bills in cross-border deals.
The tax office had asked Vodafone to pay Rs 112.18 billion within 30 days, but the British firm had said it strongly disagreed with the calculation. Meanwhile, the Netherlands has now written to India asking it to consider an alternate dispute resolution that will run parallel to the ongoing court process through what is termed as a Mutual Agreement Procedure (MAP).
India would examine the request and take a decision in accordance with the provisions of the India-Netherlands double tax avoidance agreement (DTAA).
