{"id":381,"date":"2015-10-10T10:22:23","date_gmt":"2015-10-10T10:22:23","guid":{"rendered":"https:\/\/sunkrish.com\/?p=381"},"modified":"2017-01-13T06:30:00","modified_gmt":"2017-01-13T06:30:00","slug":"vodafone-gets-a-reprieve-in-rs-8-500-cr-transfer-pricing-case","status":"publish","type":"post","link":"https:\/\/sunkrish.com\/index.php\/2015\/10\/10\/vodafone-gets-a-reprieve-in-rs-8-500-cr-transfer-pricing-case\/","title":{"rendered":"Vodafone gets a reprieve in Rs. 8,500-cr transfer pricing case"},"content":{"rendered":"

<\/a>The Bombay High Court on Thursday gave a favourable ruling to Vodafone in the transfer pricing case related to the sale of the company\u2019s call-centre business to Hutchison and assignment of call options to Vodafone International.<\/p>\n

The tax dispute, which dates back to 2007-08, arose after the tax authorities added Rs. <\/span>8,500 crore to the taxable income of the call centre unit. It had initially received a tax claim of about Rs. <\/span>3,600 crore.<\/p>\n

While the Income-Tax Appellate Tribunal had upheld the I-T department\u2019s claim, the High Court has accepted Vodafone\u2019s position that the Department had no jurisdiction.<\/p>\n

The court was of the view that there is no transfer of the \u2018call options\u2019 and, hence, the transaction does not fall within the purview of transfer pricing.<\/p>\n

The I-T Department can challenge this order in the Supreme Court.<\/p>\n

\u201cWe will study the order of the Bombay High Court on the Vodafone transfer pricing issue and then take a call,\u201d Revenue Secretary Hasmukh Adhia said.<\/p>\n

The I-T Department had issued its draft transfer-pricing order in December 2011. In 2012, Vodafone India Services moved the High Court challenging the Department\u2019s jurisdiction.<\/p>\n

This is the second major victory for Vodafone in tax-related cases in India. In October, the Bombay High Court had ruled that Vodafone is not liable to pay Rs. <\/span>3,200 crore in taxes in a 2009-10 transfer pricing case.<\/p>\n

However, a verdict is still awaited in the $2.5 billion capital gains tax case, where the Department had asked Vodafone to pay tax for acquiring Hutchison\u2019s telecom operations in India.<\/p>\n

(This article was published in the Business Line print edition dated October 9, 2015)<\/div>\n
http:\/\/www.thehindubusinessline.com\/todays-paper\/vodafone-gets-a-reprieve-in-rs-8500cr-transfer-pricing-case\/article7740178.ece<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

The Bombay High Court on Thursday gave a favourable ruling to Vodafone in the transfer pricing case related to the sale of the company\u2019s call-centre business to Hutchison and assignment of call options to Vodafone International. The tax dispute, which … Continued<\/a><\/p>\n","protected":false},"author":1,"featured_media":3206,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,4,497,491],"tags":[298,295,300],"class_list":["post-381","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-corporate-business-advisory-services","category-financial-corporate-services","category-cross-border-transactions-mas-joint-ventures","category-income-tax-e-filing-of-returns-for-individuals-partnerships-companies","tag-ease-of-doing-business","tag-taxation","tag-transfer-pricing"],"_links":{"self":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/381","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/comments?post=381"}],"version-history":[{"count":2,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/381\/revisions"}],"predecessor-version":[{"id":3207,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/posts\/381\/revisions\/3207"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media\/3206"}],"wp:attachment":[{"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/media?parent=381"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/categories?post=381"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sunkrish.com\/index.php\/wp-json\/wp\/v2\/tags?post=381"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}