Government issues fresh tax notice to Vodafone: Report

Tax authorities have issued a fresh notice to Vodafone Group seeking re-assessment of tax returns for assessment year 2009-2010, news channel ET Now reported citing sources familiar with the development.

The government in January said it would not appeal a regional court ruling in favour of Vodafone in a long-running dispute under which the taxmen had accused a unit of the British telecoms firm of under-pricing shares in a rights issue.

"Vodafone has 30 days to respond to the fresh notice", the news channel's report said.

However, Finance Minister Arun Jaitley, in comments carried by Business Standard newspaper, said: "Barring a case that is pending under that law (Income Tax Act) or another case that has arisen now, I think we've put most issues to rest, as far as retrospective legislation is concerned."

Modi's government has sought to move towards a tax-friendly regime to boost much-needed foreign investment and reduce the tax battles that during the last government embroiled multinationals including Vodafone Group, Royal Dutch Shell, IBM and Microsoft.

(Reuters)