telecom company

RCOM asked ministry to reject special audit report and demanded action against its special auditor

Reliance Communications (RCOM), India's second-largest telecom company by subscribers, has asked the communications ministry to reject the special audit on it by Parakh & Co and alleged that the report `was issued for malafide purpose, based on uncorroborated facts and done without any discussions with it (RCOM)'. The telco has also told the Department of Telecom (DoT) that `the entire report was drafted for the purpose on sensationalising irrelevant matters'.
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Interest on funds borrowed for acquiring controlling interest not allowable expenditure under the Income Tax Act

The Taxpayer incurred interest expenditure on the funds borrowed for investing in shares of a company, with a view to acquire controlling interest. The ITAT held that the interest expenditure incurred is not allowable under Section 57(iii)(Section) of the Indian Tax Law (ITL), since it is not incurred 'wholly and exclusively' for the purpose of earning dividend income.
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17 FDI proposal worth Rs. 4500 crore cleared by Govt. on recommendation of FIPB

Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on November 20, 2009, Government has approved 17 Proposals of Foreign Direct Investment amounting to Rs. 4551.05 Crore approximately, the largest chunk of which is likely to be invested by a Russian government agency in telecom company Sistema Shyam.
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Deductibility of interest on funds borrowed for acquiring controlling interest

This article summarizes a recent ruling of the Mumbai Income Tax Appellate Tribunal (ITAT) in the case of Panatone Finvest Ltd.(Taxpayer) [2009-TIOL-717-ITAT-MUM]. The Taxpayer incurred interest expenditure on the funds borrowed for investing in shares of a company, with a view to acquire controlling interest. The ITAT held that the interest expenditure incurred is not allowable under Section 57(iii) (Section) of the Indian Tax Law (ITL), since it is not incurred ‘wh..
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Vodafone seek time to reply Income Tax Department notice

On October 30, 2009, the Income-Tax Department issued a notice to Vodafone International Holdings BV (VIH BV) over its 11.2-billion dollar purchase of Hutchison Telecom’s Indian operations (Vodafone Essar) in 2007. “Vodafone International Holdings BV (VIH-BV) was required to file its explanation by November 16, 2009. However VIH BV has requested for further time till January 29, 2010,” Minister of State for Finance S S Palanimanickam said in a written reply to the ..
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