Vodafone ready to pay Rs 8,000 crore tax if India waives penalty and interest
Telecom Lead India: Vodafone is willing to pay Rs 8,000 crore tax if India government is ready to waive penalty and interest.
Vodafone non-executive Chairman Analjit Singh said the UK telecom giant is ready to discuss tax related issues with the government and paying tax.
Paying Rs 8,000 crore is exactly an option. “I don’t know if it’s viable,” said Vodafone non-executive Chairman Analjit Singh said when asked whether it is a viable option for the telecom giant to pay Rs 8,000 crore tax if penalty and interest are waived.
On Thursday, Singh discussed tax matter with various officials of the tax department.
The Income Tax Department had raised Rs 11,218 crore tax demand (including Rs 7,900 crore tax demand and the remaining interest) from Vodafone for its acquisition of Hutchison stake in Hutchison-Essar in 2007.
But the Supreme Court struck down the tax claim. Following the Supreme Court judgement, the government in the Finance Bill, 2012 has proposed amendments in the Income-tax Act, 1961, with retrospective effect to bring in tax net overseas mergers and acquisitions involving Indian assets, according to a report in Economic Times.
Earlier this week, Vodafone Chief Financial Officer Andy Halford had said in London that the company might make a provision to cover the legal risks arising out of the tax dispute with the Indian government.