It all started in 2007 when Vodafone acquir Indian Assets from Hutch for which deal was signed in Cayman island
Indian Tax department issued Notice to Vodafone demanding Tax along with interest and penalty ( INR 11218 Crores )
after long legal battle it ended with the supreme court decison in Jan 2012 . Tax dept demand was rejected by court
Govt of India as guided by by FM Mr Pranav Mukherjee did something which was not expected by any of the international investor . They ammended the Tax laws to cover Vodafone transaction .
Lot of Noise got created / lot of damage happend to Investment flow to India
After that no noise for long time . Tax dept sent a reminder Notice to vodafone in december 2012 last week
Vodafone replied that they do not think they have to pay any Tax
Govt of India has now invited vodafone for a mutual settlement .
Most likely settlement will be reached keeping in mind the damage this case has already done to the Crediability of India as an Investment destination in the mind of International investor .
Most likely outcome will be Vodafone will pay the basic Tax amount . Govt will leave the penalty . Regarding interest they may agree on 50:50 sharing
let us see what is happening
Indian Tax department issued Notice to Vodafone demanding Tax along with interest and penalty ( INR 11218 Crores )
after long legal battle it ended with the supreme court decison in Jan 2012 . Tax dept demand was rejected by court
Govt of India as guided by by FM Mr Pranav Mukherjee did something which was not expected by any of the international investor . They ammended the Tax laws to cover Vodafone transaction .
Lot of Noise got created / lot of damage happend to Investment flow to India
After that no noise for long time . Tax dept sent a reminder Notice to vodafone in december 2012 last week
Vodafone replied that they do not think they have to pay any Tax
Govt of India has now invited vodafone for a mutual settlement .
Most likely settlement will be reached keeping in mind the damage this case has already done to the Crediability of India as an Investment destination in the mind of International investor .
Most likely outcome will be Vodafone will pay the basic Tax amount . Govt will leave the penalty . Regarding interest they may agree on 50:50 sharing
let us see what is happening
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