India court dismisses Vodafone petition in tax case

MUMBAI, Sept 8 (BestGrowthStock) – An Indian court has dismissed a
petition filed by Britain’s Vodafone (VOD.L: ) against the
country’s tax department, saying the department does have
jurisdiction over tax bills in cross-border mergers.

“The petition is dismissed,” one of the judges said in the
ruling.

“The IT authority’s order cant be held to lack
jurisdiction,” he said.

Vodafone, fighting a tax bill in India from its 2007
purchase of Hutchison Whampoa Ltd’s (0013.HK: ) mobile business
in the country, had filed an appeal with the court in June
challenging the tax department’s jurisdiction over the tax
bill.

Vodafone has not said how much the authorities were
seeking, but a person with knowledge of the matter has said it
was about 120 billion rupees ($2.6 billion).

The Bombay High Court had concluded its hearing in
Vodafone’s appeal against the country’s tax department last
month.

A spokesman for Vodafone in India had no immediate comment.

Indian tax authorities have said Vodafone’s deal was liable
for tax because most of the assets were based in India and
under Indian law, buyers have to withhold capital gains tax
liabilities and pay them to the government.

But Vodafone has said Indian law did not require it to
deduct tax, and that capital gains taxes are usually paid by
the seller.
($1=46.7 rupees)
(Reporting by Prashant Mehra, writing by Pratish Narayanan;
editing by Jui Chakravorty)

India court dismisses Vodafone petition in tax case