Vodafone, others to get I-T notices soon

PTI | May 30, 2012, 08.14PM IST
http://timesofindia.indiatimes.com/business/india-business/Vodafone-others-to-get-I-T-notices-soon/articleshow/13674250.cms

NEW DELHI: The Income Tax authorities will soon send reminder notice to Vodafone and raise demands from other companies to recover similar tax dues, which may yield the exchequer a total of Rs 40,000 crore. "We will send reminder notice to Vodafone," a top Finance Ministry official said. There are eight more cases where demand notice is yet to go, as assessment has not been finalised. "In total, 18-19 Vodafone-like cases would be impacted," he added.
These notices follow the retrospective amendment to the Income Tax Act, which has come into effect after President gave assent to the Finance Bill, 2012.

The amendments to the I-T Act would neutralise the victory of Vodafone in the Rs 11,000 crore tax case in Supreme Court and the company, according to estimates, would now be liable to pay about Rs 20,300 crore, including tax, penalty and interest. Meanwhile the government has replied to the arbitration notice of Vodafone saying that it was premature on a technical ground.

The Finance Bill which was to give effect to the retrospective amendment was not approved when the British telecom firm had sent the arbitration notice. The companies which may be impacted with the amendment in the I-T Act for taxing deals involving Indian assets with retrospective effect include - Accenture Services Pvt Ltd (for assessment year 2012-13), Tata Industries (2006-07), New Singular Wireless Services (2007-08). Besides, Unilever Transbull Research Services(assessment year 2004-05), Sabmiller (2007-08), Sanofi (2007-08) and Sesa Goa (2008-9) would also be affected.