An Indian court has ruled in favour of Vodafone in a US$690m tax case, although the UK telco’s tax woes in the country are not yet over.
An Indian court has ruled in favour of Vodafone (LON:VOD) in a £450m (US$690m) tax case, although the UK telco’s tax woes in the country are not yet over.
The Bombay High Court ruled for Vodafone in a case concerning the transfer of a call centre and share options linked to its US$10.9bn takeover of local mobile operator Hutchison Essar in 2007, a company spokesperson confirmed.
According to Vodafone’s 2015 annual report, the company was assessed as owing £260m in tax and £190m in interest, or a total £450m.
The 2007 deal is linked to a separate, US$2.6bn tax dispute between Vodafone and the Indian government, currently under international arbitration.
Vodafone is one of multiple foreign companies to have faced accusations of underpaying taxes in India.
The Vodafone spokesperson said the company “welcomes today’s decision by the Bombay High Court”, but did not comment further.
Bloomberg TV India cited the company’s lawyer Balbir Singh saying that it hopes the government will not seek an appeal.
In January, the government decided not to appeal an October 2014 tax ruling, also by the Bombay High Court, that went in Vodafone’s favour.