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Will issue fresh tax demand for Vodafone: I-T Dept

The Income-Tax department is looking at an over Rs 12,000-crore tax on the $11 billion deal signed between Vodafone and Hutch in 2007.

twitter-logoPTI | October 2, 2010 | Updated 09:54 IST

The Income-Tax (I-T) Department on Monday said it will issue a demand for over Rs 12,000 crore to Vodafone within the coming month, following a Supreme Court verdict to the effect.

"We will be raising tax demand on Vodafone within four weeks," Central Board of Direct Taxes (CBDT) Chairman, S S N Moorthy, told reporters here.

The amount could be almost over Rs 12,000 crore, Moorthy said when asked for details. The total includes interest on Vodafone's tax liability.

He said a few similar cases are also under the I-T Department's scanner, but refused to name them. The CBDT chairman said raising the demand will not impact foreign investments in India.

"Apprehensions have been expressed in different quarters regarding the impact of our action on foreign investment in India. The ruling, coupled with the earlier ones of the Bombay High Court, proved that I-T authorities in India have acted lawfully. This, together with the fact that India has received the highest ever foreign direct investment in the current financial year, belies that apprehension," Moorthy said.

The Supreme Court on Monday refused to offer any immediate relief to Vodafone. The company had challenged a Bombay High Court order allowing the government to tax the company's $11-billion deal with Hutch.

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