comscore Vodafone retrospective tax issue: FM Arun Jaitley defends government's appeal against Bombay HC verdict
News

Vodafone retrospective tax issue: FM Arun Jaitley defends government's appeal against Bombay HC verdict

Finance Minister Arun Jaitley has defended the Bombay HC verdict of the Rs 8,500-crore Vodafone transfer pricing case.

  • Updated: April 21, 2016 1:05 PM IST
vodafone-india-revenue

Defending move to appeal against the Bombay High Court verdict in the Rs 8,500-crore Vodafone transfer pricing case, India’s Finance Minister Arun Jaitley on Wednesday said the case had nothing to do with retrospective tax issue and no company is immune from paying taxes. “Why should the government not file an appeal when it thinks that it is an appealable order,” he told ET Now. “There is no company in the world that is immune from paying taxes.” Also Read - Reliance Jio vs Vi vs Airtel: Best 4GB daily data prepaid plans under Rs 600

Also Read - YouTube, Gmail, Google Maps stops working on these phones from today: Check if your phone is in the list

Also Read - Reliance Jio vs Vi vs Airtel: Best plans under Rs 200 with unlimited calling, date benefits, and more

Jaitley was responding to a question on the tax department deciding to challenge an October 8, 2015 decision of the Bombay High Court in the Supreme Court through a Special Leave Petition (SLP).

“There are important questions of law which go to the Supreme Court. This case has nothing to do with the retrospective tax issue,” said Jaitley, who is here on a seven-day official tour.

Vodafone had got favorable verdicts from the Bombay High Court in two tax cases last year. The first one pertained to the High Court rejecting tax authorities claim that Vodafone priced the shares of its stakes in its Indian companies sold to other arms of Vodafone in a way to avoid taxes. The Income Tax Department had sought Rs 3,000 crore in taxes.

In the second case, the High Court had on October 8 ruled that the Department did not have the jurisdiction on the sale of Vodafone’s call center business to Hutchison Whampoa Properties and assignment of call options to Vodafone International Holdings BV in 2007-08. The Income Tax Department has decided to appeal against the second verdict. It has, however, decided not to appeal against the first case alongside a similar transfer-pricing case won by Royal Dutch Shell.

ALSO READ: Vodafone tax case could have been handled differently: Ravi Shankar Prasad

Besides the two cases, Vodafone is fighting a separate larger case relating to imposition of taxes using retrospective legislation over its 2007 acquisition of an Indian telecom group. The case is awaiting international arbitration.

“There can’t be a principle that a company had once an issue of retrospective taxation, this company is immune from other forms of taxation. So If there are legitimate issues with regard to other areas, it is between the company and department to sort them out,” Jaitley said on Vodafone case.

He said retrospective tax is an issue of the past.

“It is an issue which the previous government has created. It is an issue which we have resolved. For one or two cases which are pending, we have given several options of resolving these issues,” he said.

ALSO READ: Government appoints arbitrators in Vodafone tax dispute case: Jayant Sinha

The Minister was referring to his Budget proposal to waive interest and penalty if the companies involved in retrospective tax cases like Vodafone and Cairn Energy plc of UK paid the principal tax amount.

“We want a predictable tax regime. Therefore, the predictability of tax regime is ensured by not having retrospective taxation and that is the clear policy of the government,” he said.

Investors, he said, are very clever people who understand the sea change that has taken place in India. “I don’t have to smoothen any nerves, investors are very enthusiastic and bullish about India.”

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel. Also follow us on  Facebook Messenger for latest updates.
  • Published Date: April 21, 2016 1:00 PM IST
  • Updated Date: April 21, 2016 1:05 PM IST



new arrivals in india

Realme GT Neo 2
Realme GT Neo 2

31,999

Vivo X70 Pro Plus
Vivo X70 Pro Plus

84,990

Vivo X70 Pro
Vivo X70 Pro

51,990

Poco C31
Poco C31

10,999

Nokia C30
Nokia C30

12,499

Samsung Galaxy F42 5G
Samsung Galaxy F42 5G

17,999

Xiaomi 11 Lite NE 5G
Xiaomi 11 Lite NE 5G

31,999

Samsung Galaxy M52
Samsung Galaxy M52

29,999

Oppo F19S
Oppo F19S

19,990

IQOO Z5
IQOO Z5

29,990

Realme Narzo 50A
Realme Narzo 50A

11,499

Realme Narzo 50i
Realme Narzo 50i

7,499

Oppo A16
Oppo A16

16,990

Infinix Hot 11S
Infinix Hot 11S

13,999

Infinix Hot 11
Infinix Hot 11

11,999

Realme C25Y
Realme C25Y

11,999

Nokia C01 Plus
Nokia C01 Plus

6,999

Nokia G10
Nokia G10

13,999

Apple IPhone 13 Pro Max
Apple IPhone 13 Pro Max

1,29,900

Apple IPhone 13 Pro
Apple IPhone 13 Pro

1,19,900

Apple IPhone 13 Mini
Apple IPhone 13 Mini

69,900

Apple IPhone 13
Apple IPhone 13

79,900

Realme 8i
Realme 8i

13,999

Realme 8s 5G
Realme 8s 5G

17,999

Xiaomi Redmi 10 Prime
Xiaomi Redmi 10 Prime

12,499

Samsung Galaxy A52s 5G
Samsung Galaxy A52s 5G

35,999

Samsung Galaxy M32 5G
Samsung Galaxy M32 5G

20,999

Vivo Y33s
Vivo Y33s

17,990

Realme C21Y
Realme C21Y

8,999

Vivo Y21
Vivo Y21

15,490

Realme GT Master Edition
Realme GT Master Edition

25,999

Realme GT 5G
Realme GT 5G

37,999

Itel A48
Itel A48

6,399

Motorola Edge 20
Motorola Edge 20

29,999

Motorola Edge 20 Fusion
Motorola Edge 20 Fusion

21,499

Samsung Galaxy Z Flip 3
Samsung Galaxy Z Flip 3

84,999

Samsung Galaxy Z Fold 3
Samsung Galaxy Z Fold 3

1,49,999

Samsung Galaxy A12 (Exynos)
Samsung Galaxy A12 (Exynos)

13,999

Nokia C20 Plus
Nokia C20 Plus

8,999

Vivo Y53s
Vivo Y53s

19,490

Tecno Pova 2
Tecno Pova 2

10,999

Infinix Smart 5A
Infinix Smart 5A

6,499

Micromax In 2b
Micromax In 2b

8,999

Vivo Y72 5G
Vivo Y72 5G

20,990

Tecno Camon 17
Tecno Camon 17

12,999

Tecno Camon 17 Pro
Tecno Camon 17 Pro

16,999

Realme C11 2021
Realme C11 2021

6,999

Oppo Reno6 Pro 5G
Oppo Reno6 Pro 5G

39,990

Oppo Reno6 5G
Oppo Reno6 5G

29,990

Samsung Galaxy M21 2021
Samsung Galaxy M21 2021

12,499

OnePlus Nord 2
OnePlus Nord 2

27,999

Poco F3 GT
Poco F3 GT

27,999

Samsung Galaxy A22 5G
Samsung Galaxy A22 5G

19,999

Xiaomi Redmi Note 10T 5G
Xiaomi Redmi Note 10T 5G

13,999

Samsung Galaxy F22
Samsung Galaxy F22

12,499

Xiaomi Mi 11 Lite
Xiaomi Mi 11 Lite

21,999

Infinix Note 10 Pro
Infinix Note 10 Pro

16,999

Infinix Note 10
Infinix Note 10

10,999

Vivo Y73
Vivo Y73

20,990

OnePlus Nord CE 5G
OnePlus Nord CE 5G

22,999

iQOO Z3
iQOO Z3

19,990

Realme C25s
Realme C25s

9,999

Poco M3 Pro 5G
Poco M3 Pro 5G

13,999

Realme X7 Max 5G
Realme X7 Max 5G

26,999

Oppo F19
Oppo F19

18,990

Motorola Moto G40 Fusion
Motorola Moto G40 Fusion

13,999

POCO M2 Reloaded
POCO M2 Reloaded

9,499

OPPO A74 5G
OPPO A74 5G

17,990

Oppo A53s 5G
Oppo A53s 5G

14,990

Vivo V21 5G
Vivo V21 5G

29,990

Realme C25
Realme C25

9,499

Realme C21
Realme C21

7,999

Realme C20
Realme C20

6,799

Motorola Moto G60
Motorola Moto G60

17,999

iQOO 7
iQOO 7

31,990

Samsung Galaxy M42 5G
Samsung Galaxy M42 5G

21,999

Xiaomi Mi 11 Ultra
Xiaomi Mi 11 Ultra

69,999

Xiaomi Mi 11X Pro 5G
Xiaomi Mi 11X Pro 5G

39,999

Xiaomi Mi 11X
Xiaomi Mi 11X

29,999

Realme 8 5G
Realme 8 5G

13,999

Samsung Galaxy F02s
Samsung Galaxy F02s

8,999

Samsung Galaxy F12
Samsung Galaxy F12

10,999

POCO X3 Pro
POCO X3 Pro

18,999

Realme 8 Pro
Realme 8 Pro

17,999

Realme 8
Realme 8

14,999

Vivo X60 Pro Plus
Vivo X60 Pro Plus

69,990

Vivo X60 Pro
Vivo X60 Pro

49,990

Best Sellers