The Bombay High Court Friday ruled that British telecom major Vodafone need not pay taxes of around Rs.3,200 crore in a transfer pricing case.<\/p>\n
“We feel that there is no taxable income on the share premium received on the issue of the shares,” a division bench of Chief Justice Mohit Shah and Justice M.S. Sanklecha ruled.<\/p>\n
Acccordingly, the court held that since there was no taxable income, there would be no tax on Vodafone, in the company’s $11.2 billion deal with Hutchison in 2007.<\/p>\n
The verdict could prove to be a major setback to the Income Tax Department (ITD), which is expected to challenge the high court ruling in the Supreme Court.<\/p>\n
The IT Department had demanded the tax amount from Vodafone’s outsourcing unit in Pune for the year 2008-2009, including taxes plus interest, which the company had challenged.<\/p>\n
Vodafone was ordered to pay taxes for a share transfer that was done by the subsidiary of the parent company, on the value of the shares that were issued.<\/p>\n
The judgment spells hope now for at least 20 other companies involved in similar taxation-related disputes with the Indian authorities.<\/p>\n","protected":false},"excerpt":{"rendered":"
The Bombay High Court Friday ruled that British telecom major Vodafone need not pay taxes of around Rs.3,200 crore in a transfer pricing case. “We feel that there is no taxable income on the share premium received on the issue of the shares,” a division bench of Chief Justice Mohit Shah and Justice M.S. Sanklecha […]<\/p>\n","protected":false},"author":1,"featured_media":21358,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[86],"tags":[2840,30034,23771,30033],"class_list":["post-35490","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-consumer-law-news","tag-chief-justice-mohit-shah","tag-justice-m-s-sanklecha","tag-the-bombay-high-court","tag-vodafone-in-transfer-pricing-case"],"yoast_head":"\n