I-T slaps fresh notice on Vodafone

NEW DELHI: The income tax department has slapped a fresh notice on UK-based telecom firm Vodafone, pertaining to its acquisition Hutchison back in 2007.

The company is already muddled in a tax row with the government with regards to the acquisition.
It has sought arbitration under the Bilateral Investment Protection and Promotion Agreement (BIPA) between India and the Netherlands in order to resolve the Rs 20,000-crore tax issue.

“The revenue authorities have recently issued a notice against Vodafone International Holdings under section 148 of the Income Tax Act seeking re-assessment of tax returns for assessment year 09-10. Section 148 deals with income that has escaped assessment and the tax department is seeking additional revenue in this case. Though at this point, the relevant quantum and the trigger for the notice are unknown,” media reports said quoting sources.

Under the Income-Tax Act, Vodafone International Holdings has to respond to the fresh notice within 30 days..

“The company will have to file fresh tax returns and will then be able to demand an explanation from the revenue authorities on the rationale behind the proceedings under section 148 of the Income Tax Act. If the telco disagrees with the reasons furnished by the tax authorities, it has the option of challenging the notice by moving court,” another source said.

Leave a Reply

Your email address will not be published. Required fields are marked *