Summary of Proceedings before Bombay HC in case of Vodafone International Holding B.V

Vodafone International Holding B.V. (Vodafone NL) was issued an order by the Indian Tax Authority assessing a capital gains tax alleged to have arisen to the Hong Kong based Hutchison Group (Hutch) on acquisition of controlling interest in an Indian entity, Vodafone-Essar Ltd. The controlling interest was acquired by acquiring the shares of a foreign holding company that indirectly held more than 50% of the shares of the Indian entity. The Tax Authority has alleged that Vodafone NL failed to withhold Indian tax on the payment of consideration made to Hutch for acquiring the controlling interes...