India’s Supreme Court has dismissed an income tax department’s plea to review the verdict on the Vodafone tax case earlier this year.
In a statement sent to TelecomFinance, Vodafone said: “The Supreme Court’s clear and unambiguous ruling today,…
India’s Supreme Court has dismissed an income tax department’s plea to review the verdict on the Vodafone tax case earlier this year.
In a statement sent to TelecomFinance, Vodafone said: “The Supreme Court’s clear and unambiguous ruling today, based on the existing laws of India, reiterates that the Indian tax authority does not have the jurisdiction to tax the transaction.
“We look forward to the return of our deposit immediately.”
On 20 January, the Supreme Court concluded that Vodafone was not liable for a US$2.4bn withholding tax bill linked to the purchase of a 67% stake in Hutchison Essar (now known as Vodafone India) in 2007.
At the time, the court also ordered that Vodafone should be reimbursed a US$500m deposit.
But in mid-February, the tax office asked for the case to be reviewed.
Today’s announcement comes a few days after the Indian finance ministry said, in its 2012-2013 budget, that it is planning to tax all acquisitions of local assets by foreign companies since 1962 as part of some tax rule amendments.
Vodafone said that its lawyers were examining the proposed change but added that it does not expect any impact on the Supreme Court’s decision.
