Global telecom giant, Vodafone has indicated that it is willing to pay the tax on Hutchison deal but without interest on the amount and penalty.
The company has expressed its willingness to discuss the terms with the government. Vodafone India non-executive chairman Analjit Singh said that the term is an option in front of the company but he added that it is not sure if it is a feasible solution. Vodafone Group is expected to pay more than $2 billion in taxes as the government changes laws that govern taxation for its acquisition of Hutchison Whampoa Ltd's India operations in 2007.
"We have made our public position very clear that Vodafone is completely ready to discuss the matter. Vodafone is not a company that is confrontationist or controversial. This is not Vodafone's business; its business is telecom," he Mr. Singh.
The Vodafone taxation issue emerged after the government moved to make amendment relating to the retrospective taxation in the Income Tax Act. The then Finance Minister Pranab Mukherjee had backed the proposed changes to the Income Tax Act with retrospective effect, which allowed the government to demand about Rs 11,000 crore as tax for an acquisition deal from Vodafone.