SME Times is powered by   
Search News
Just in:   • Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia  • Europe facing earlier, stronger heatwaves: Climate scientist  • India and Namibia sign two MOUs in fields of health and entrepreneurship  • PM Modi arrives in Delhi after concluding 'productive and successful' 5-nation tour  • ASEAN to keep on consensus, inclusivity: Malaysian official 
Last updated: 27 Sep, 2014  

Vodafone9.Thmb.jpg Govt approves conciliation in Vodafone tax row: FM

Chidambaram.9.jpg
   Top Stories
» Committed to nurture next-gen innovation in 6G technology: Jyotiraditya Scindia
» Piyush Goyal holds talks with Malaysian minister on review of ASEAN trade pact
» India and OPEC have a unique and symbiotic relationship: Hardeep Puri
» SIP inflows hit all-time high in June, total AUM for equity MF at Rs 74.41 lakh crore
» India set to explore over 2.5 lakh sq kms area in one of largest offshore energy efforts
SME Times News Bureau | 05 Jun, 2013
The cabinet Tuesday gave the go-ahead for the conciliation process with the Vodafone Group, Finance Minister P. Chidambaram said.

"There was a proposal from the finance ministry. The cabinet today (Tuesday) approved a proposal of the finance ministry for non-binding conciliation on the issue," he said after the cabinet meeting.

British telecom major Vodafone is facing a Rs.11,217-crore tax liability in India. Earlier this year, the law ministry had rejected the finance ministry's proposal for conciliation with Vodafone and said it was illegal.

"The names of the conciliators from the government side will be given to the prime minister, who will approve it," Chidambaram he added.

Both sides will sit down and discuss non-binding conciliation to this issue and after a decision is reached, the company will take it to its board for approval and the government will also sought for necessary cabinet approval.

Once cabinet gives approval to the outcome of the conciliation process, the finance ministry will move an amendment to the Income Tax Act, which will have to be approved by Parliament.

The telecom company is facing this tax liability for the purchase of Hong Kong-based Hutchison Whampoa's telecom business, which involved stake in its Indian venture, Hutchison Essar, in 2007.

After Vodafone won a tax case in the Supreme Court of India, during the tenure of Pranab Mukherjee as the finance minister, the government amended the Income-Tax Act with retrospective effect to undo the ruling.

The Income Tax Department issued a letter to Vodafone International Holdings BV in January, stating that the company is required to pay tax demand of about Rs.11,217 crore along with interest. But Vodafone replied that it does not owe anything to the Indian government.

Chidambaram further added: "It is in India's interest to resolve this case. The current law validates the tax demand."
 
Print the Page Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter