Latest News
-
2 Multibagger Defence To Shield Your Money, Buy On April 24; Prabhudas Sets Target Prices, Stop Loss -
Rs 3.5/Share Dividend Declared: NBFC Declares 55.5% YoY Surge In PAT, Shares Up 87% In 1-Yr -
Rs 118/Share Dividend: Healthcare Stock Below Rs 400 Turned Ex-Dividend, Payout Soon; Buy For Rs 515 Target -
6,693% Returns: Below Rs 75, Pharma Penny Stock Ex-Dividend For Rs 40/Sh Payout After 9 Years; Do You Own? -
TCS Vs Infosys Vs Wipro Shares, ADRs, Upcoming Dividends: Which Mega IT Stocks To Buy After Q4 Results? -
SBI Card Launches 3 New Variants of Its Travel Credit Card ‘SBI Card MILES’ -
25% Dividend Record Date: Logistic Stock Nears 1-Year High And It Belongs To Mahindra; Motilal Neutral -
1:10 Split, 26 Dividends: Tata's 26-Year-Old Retail Stock In Focus, Q4, Dividend Ahead; Buy For Target Rs 4200 -
1:5 Split Soon: Rs 2,300 Defence Stock To Split Into Five Shares, Rs 400 Cr Fundraising Too; Hits 52-Week High -
Penny Stock Bags Back-To-Back Orders Worth Rs 500 Mn, 110 Mn; Shares Hit Upper Circuit
The Supreme Court begins Vodafone hearing
Indian tax authorities smacked $2.5 billion of tax on Vodafone last October over its purchase of stake which happened in 2007. Vodafone has consistently opposed this, claiming the deal doesn"t come under Indian tax jurisdiction.
The case is in the custody of three-judge bench headed Chief Justice S H Kapadia, Justice K S Panicker Radhakrishnan and Justice Swatanter Kumar. Vodafone representative and senior advocate Harish Salve claimed before the judges that transaction between two foreign companies -- Vodafone International Holding BV and Hutchison Communication International Ltd -- had happened outside India, hence the Income tax department cannot impose capital gain tax.
"Both the companies are foreigners and the transaction happened outside the country so the overseas transaction cannot be taxed" Salve said.
Vodafone also mentioned it was the purchaser and not the seller and made no gain on the transaction.
The case is being closely watched by the foreign investors and same could impact further foreign investments in India say experts.
The company had earlier fought the case in Mumbai High Court which was ruled out in favour of I-T department, following which Vodafone moved to Supreme Court last year.
The case was scheduled to start in the Supreme Court of India on July 19, but has been delayed and is expected to run for a few months as it is unclear how many days the court will sit, say experts.
The company had already invested $23 billion in the country, including $12 billion for acquisition of the 67 per cent stake of Hutchison, and would now pay $5 billion to Essar for buying its stake. Besides, it has invested an additional $6 billion to roll out operations and acquire spectrum in the last four years.
The global telecom major, which is present in about 30 countries across the world, has recently added India to its portfolio, beside the US and Europe. These tax issues may impact Vodafone's further investments in India until they get clarity on issues such as spectrum and tax.
