Vodafone issue will be resolved shortly

Finance Minister, P. Chidambaram exuded that the Rs.11,200-crore Vodafone tax dispute will be resolved within a month.

The Vodafone officials have been invited to a third round of discussions this week.

• British Telecom major Vodafone was slapped with an income tax demand notice of Rs.11,200 crore on its 2007 acquisition of Hong Kong based Hutchinson Whampoa's stake in its Indian telecom business.

• Later the Supreme Court judgement ruled in favor of the company.

• Later the then Finance Minister Pranab Mukherjee amending the Income Tax act, 1961, with retrospective effect to undo the Supreme Court judgement that had ruled in favor of the company.

The Indian Government is working towards a solution based on the recommendations of the Shome Panel, which suggested that,

either the government should withdraw the retrospective tax amendment or waive the penalty in case it had to recover the taxes.


Courtesy: THE HINDU