The income-tax department has threatened to seize the Indian assets of UK-based Vodafone Group Plc if it doesn’t pay a disputed Rs 14,200-crore tax demand that is undergoing international arbitration
The income-tax department has threatened to seize the Indian assets of UK-based Vodafone Group Plc if it doesn’t pay a disputed Rs 14,200-crore tax demand that is undergoing international arbitration proceedings.
The notice by the tax authorities was sent February 4 to Vodafone International Holdings BV seeking Rs 14,200 crores in taxes, which it says are due from its $11 billion acquisition of Hutchison Whampoa’s India business in 2007.
In a potshot at the government’s promise of a tax-friendly environment, Vodafone said: “In a week when Prime Minister Modi is promoting a tax-friendly environment for foreign investors, this seems a complete disconnect bet-ween the government and tax department.”
Revenue secretary Hasmukh Adhia tweeted: “It is a routine exercise of sending collection notice to all those whose dues are not stayed by any court”.
