Income Tax - While the Indian Government is going all out to create a positive India outline, however, it is a reality that the World Bank's Ease of Doing Business 2015 report puts India as low as 186 on the criteria of contract enforcement. India strongly believes in the rule of law but an important aspect in doing business is factored out of the eas...
Read MoreIncome Tax - One among st the main issues surrounding the impasse is the payment of ejected liability carrying a whopping sum of Rs.14000 crore by Vodafone International Holdings B.V. under the parasol of Capital Gains Tax to the Indian tax administration. An issue squarely won by Vodafone in a proactive tax war with the authorities at the Hon’ble S...
Read MoreIncome Tax - Finance Ministry, while presenting the much disillusioned and indifferent Union Budget with heavy fanfare and subsequent silence, brought out an amendment that took many people by surprise. It was not just a normal amendment. Rather, it was the Amendment with retrospective effect, of taxing transactions which resembled the 'Vodafone-Hutch...
Read MoreIncome Tax - It is, proposed to amend the Income Tax Act in the following manner:- (i) Amend section 9(1)(i) to clarify that the expression ‘through’ shall mean and include and shall be deemed to have always meant and included by means of, in consequence of or by reason of. (ii) Amend section 9(1)(i) to clarify that an asset or a capital as...
Read MoreIncome Tax - The Bombay High court in the case of Vodafone International BV [Writ Petition No. 1325 of 2010] had inter alia held that the ‘controlling interest’ in an Indian Company is by itself a capital asset, the transfer of which is liable to taxes in India. As there was admittedly a transfer of controlling interest in the Hutchison India by H...
Read MoreIncome Tax - The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, in a major decision, has decided to accept the order of the High Court of Bombay in the case of Vodafone India Services Private Limited (VISPL) dated 10.10.2014. This is a major correction of a tax matter which has adversely affected investor sentiment....
Read MoreIncome Tax - Correct Factual Position and the Circumstances that led to the Government’s Proposal to Withdraw from the Conciliation Measures Initiated Earlier with Vodafone International Holdings B.V.(Vodafone)...
Read MoreIncome Tax - British telecom giant Vodafone has decided against making a provision in its balance sheet for the over Rs 11,000 tax claim made by Indian authorities for its 2007 deal to acquire stake in Hutchison-Essar....
Read MoreIncome Tax - UK-based telecom giant Vodafone on Thursday said it is willing to discuss tax related issues with the government and paying tax, which amounts to around Rs. 8,000 crore, is an option provided the interest and penalty are waived...
Read MoreIncome Tax - Government on Wednesday justified its decision to neutralise the impact of Supreme Court decision in the Vodafone case by amending the Income Tax Act with retrospective effect suggesting it was to prevent outflow of Rs 40,000-Rs 50,000 crore from the exchequer....
Read MoreVodafone International Holdings B.V. Vs Union of India & Anr. (Supreme Court of India) - In a 2.5 billion dollar sigh of relief for Vodafone, and for other companies eyeing assets in India, the Supreme Court has ruled in favour of Vodafone. The court has said that the Indian tax department cannot tax the transaction that saw Vodafone acquire 67 per cent stake in Hutchison Essar, a mobil...
Read MoreAsstt. Commissioner of Income-tax, Circle-7 Vs M/s. R.K.B.K Fiscal Services Ltd (ITAT Kolkata) - The argument that “controlling interest” was transferred with the shares was not acceptable as the share purchase agreement had been signed by the Power of Attorney (“POA”) holder. In the absence of the copy of the same, which would determine whether...
Read MoreVodafone Essar Cellular Ltd. Vs. ACIT (Kerala High Court) - Vodafone Essar Cellular Ltd. v. ACIT On this issue, the Kerala High Court observed that it was the SIM card which linked the mobile subscriber to the assessee`s network. Therefore, supply of SIM card by the assessee-telecom company was only for the purpose of rendering continued services to the sub...
Read MoreVodafone Essar Cellular Ltd. Vs ACIT (ITAT Cochin) - . There is no dispute or dis-agreement regarding the nature of transactions entered into between the assessee and its distributors. The assessee company, by virtue of the licence issued by the Department of Telecommunications, Government of India, is engaged in providing Mobile telephone services to...
Read MoreVodafone Essar Cellular Ltd. Vs ACIT (ITAT Cochin) - 25. There is no dispute or dis-agreement regarding the nature of transactions entered into between the assessee and its distributors. The assessee company, by virtue of the licence issued by the Department of Telecommunications, Government of India, is engaged in providing Mobile telephone services ...
Read MoreInstruction No. 2/2015 - (29/01/2015) - The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, in a major decision, has decided to accept the order of the High Court of Bombay in the case of Vodafone India Services Private Limited (VISPL) dated 10.10.2014. This is a major correction of a tax matter which has adversely affect...
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Instruction No. 2/2015 - (29/01/2015) -