Vodafone gets Rs3,700 crore I-T notice in transfer pricing case

The income-tax department on Wednesday slapped a Rs3,700 crore notice on British telecom major, Vodafone in a final assessment in connection with the transfer pricing case, related to unpaid dues and interest for assessment year 2008-2009, excluding penalty.

The notice comes two months after the Bombay High court dismissed a plea by Vodafone, sending it back to the disputes resolution panel of the Income Tax department.

However, Vodafone is determined to appeal to a higher tax authority.

Vodafone is also facing another Rs400 crore tax violation notice for assessment year 2009-10, slapped on the company in October. It is also yet to resolve the Rs11,200 crore tax transfer pricing case related to its transfer of ownership from Hutchinson Essar to Vodafone, when it acquired the former’ s telecom assets in 2007.

“Vodafone disagrees with the Dispute Resolution Panel decision relating to the Transfer Pricing Order which Vodafone received in December 2011. Vodafone maintains that there is no tax payable on this transaction and the company will file an appeal before the tax appeal tribunal as soon as possible,” the company said reacting to the fresh I-T notice.

“The facts of this case – including the transaction structure – were examined in considerable detail by Supreme Court, which delivered an unambiguous judgment affirming that there is indeed no tax due. Vodafone will continue to strongly defend its position against this order,” it added.