British telco Vodafone does not expect to be impacted by a proposal from India’s finance ministry to tax all acquisitions of local assets by foreign companies since 1962. On 20 January, the Indian Supreme Court concluded that Vodafone was not…
British telco Vodafone does not expect to be impacted by a proposal from India’s finance ministry to tax all acquisitions of local assets by foreign companies since 1962.
On 20 January, the Indian 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.
But as part of India’s 2012-2013 budget, unveiled today, the finance ministry is reportedly planning to amend some tax rules retrospectively from 1962.
Vodafone said today that its lawyers are examining the proposed change but does not expect that it will have any impact on the Supreme Court’s decision.
Earlier today, finance secretary R.S. Gujral was quoted saying that the ministry is not looking to raise any fresh tax demand on the British telco.
However, in mid-February, India’s income tax department sought a review of the verdict on the Vodafone tax case. A decision is expected on 20 March.
