Recently-appointed Indian finance minister Palaniappan Chidambaram has ordered a review of tax rules in the country that have a retrospective effect, he was quoted telling local reporters.
The move could provide some relief to mobile operator Vodafone…
Recently-appointed Indian finance minister Palaniappan Chidambaram has ordered a review of tax rules in the country that have a retrospective effect, he was quoted telling local reporters.
The move could provide some relief to mobile operator Vodafone India, which faces a possible US$2.4bn tax bill.
The bill is linked to the purchase of a 67% stake in Hutchison Essar (now known as Vodafone India) in 2007.
Early this year, India’s Supreme Court had concluded that Vodafone was not liable for US$2.4bn in withholding taxes for the Vodafone India stake acquisition.
But a couple of months later, India’s finance ministry, then led by Pranab Mukherjee, proposed to tax all acquisitions of local assets by foreign companies since 1962 as part of the country’s 2012-2013 budget.
Since then, British telco Vodafone, the parent of Vodafone India, has been considering taking legal action against the tax ruling. The company was not immediately available for comment.
