Telecom giant Vodafone on Thursday said that it was ready to settle the tax dispute with the government and pay tax in case the interest and the penalty are waived off.
Speaking to reporters after his meeting with tax department officials, Vodafone non-executive chairman Analjit Singh said the company was ready to settle the dispute by paying the Rs 8,000-crore tax if interest and penalty are waived off.
When asked if it was a viable option for Vodafone to pay Rs 8,000-crore tax if the government waives penalty and interest, Analjit said, "It is exactly an option. I don't know if it is viable. We have made our public position very clear, that Vodafone is completely ready to discuss the matter."
The Income Tax department has sought Rs 11,218-crore tax, which includes nearly 3,000-crore interest, from Vodafone for its acquisition of Hutchison stake in Hutchison-Essar in 2007.
Vodafone sought reprieve from Supreme Court, which ruled in favor of Vodafone. Following the ruling, the Government made amendments in the Income Tax Act, with retrospective effect to 1961, bringing foreign acquisitions and mergers involving Indian assets into the tax net.
A few days back, Vodafone group chief financial officer (CFO) Andy Halford said that the company was mulling over a plan to make a provision to cover the legal risks originating from the tax issue.