Vodafone wants govt. to club all tax claims together for early settlement

Vodafone wants govt. to club all tax claims together for early settlementBritish telecom services provider Vodafone Plc has reportedly suggested the Indian Government that all tax claims against its Indian arm be clubbed together for settlement.

Sources have revealed that Vodafone has suggested that a transfer pricing case against it should be clubbed with the Rs 11,200-crore capital gains tax dispute.

Speaking about the company's tax disputes, the sources said, "Vodafone is pushing for early resolution of the transfer-pricing case. It also wants bundling of all tax cases against it for settlement. They have said they are keen on further conciliation talks."

The company's Rs 3,700-crore transfer pricing dispute/case is currently before the Income Tax Appellate Tribunal (ITAT), which last week stayed the tax claim by the income tax department. The tribunal also ordered the telecom giant to deposit Rs 200 crore as initial payment and submit bank guarantees equivalent to the remaining amount.

The transfer-pricing case relates to issue of shares in the company's Pune-based BPO arm Vodafone India Services to Vodafone Teleservices Mauritius for Rs 246.38 crore in the financial year 2018. The income tax department accused the company of undervaluing the issue. The Rs 11,200-crore tax dispute relates to the company's acquisition of Hutchison Whampoa's shareholding in Hutchison Essar in 2007.

Meanwhile, the Foreign Investment Promotion Board (FIPB) has cleared Vodafone's proposal to acquire remaining stake in its Indian arm for Rs 10,141 crore.