Vodafone has contested the Rs 110 billion in tax imposed by the Income Tax Department on its acquisition of Hutchison, saying that it has no tax liability and will continue to defend itself, according to news reports.
In 2007, Vodafone, through its group firm Vodafone International Holdings, had bought Hutchison India’s 67 per cent stake in Hutchison-Essar for about $ 11 billion. The tax authorities have claimed that the deal attracts a tax of over Rs 110 billion, even though the deal was executed outside the country.
In November 2010, Vodafone International was asked to deposit Rs 250 billion to the Supreme Court and provide a guarantee for Rs 85 billion. The Supreme Court is scheduled to hear the appeal on the issue of jurisdiction on July 19, 2011.
