I-T seeks info from Mauritius in Vodafone tax case
The Income-Tax department has sent letters to the Mauritius government seeking information on the nature of business carried out by the Mauritius-based subsidiaries through which Hutchison International had sold its stake in Indian telecom major H...
By M Padmakshan, ET Bureau |
MUMBAI: The Income-Tax department has sent letters to the Mauritius government seeking information on the nature of business carried out by the Mauritius-based subsidiaries through which Hutchison International had sold its stake in Indian telecom major Hutchison-Essar to Vodafone. The move to seek information is part of the I-T department���s efforts to strengthen its $2 billion tax case against Vodafone.
The I-T department has also sent letters to the Netherlands government seeking details of the structure and nature of the business of the global telecom major. It���s not clear why it has done this since Vodafone is headquartered in the UK. Vodafone, which is facing a tax demand in India, had approached the Bombay High Court and the Supreme Court challenging the jurisdiction of Indian I-T department to claim tax on a deal struck outside India between two overseas parties.
SC has asked the company to present its case before the department before seeking judicial intervention. Since Hutchison International, a Hong Kong-based company, had sold its stake in Indian company Hutch-Essar through its Mauritius subsidiaries, the department wants to ascertain from the Mauritius government the exact nature of the business the Mauritius subsidiaries are engaged in.
The I-T department has also sent letters to the Netherlands government seeking details of the structure and nature of the business of the global telecom major. It���s not clear why it has done this since Vodafone is headquartered in the UK. Vodafone, which is facing a tax demand in India, had approached the Bombay High Court and the Supreme Court challenging the jurisdiction of Indian I-T department to claim tax on a deal struck outside India between two overseas parties.
SC has asked the company to present its case before the department before seeking judicial intervention. Since Hutchison International, a Hong Kong-based company, had sold its stake in Indian company Hutch-Essar through its Mauritius subsidiaries, the department wants to ascertain from the Mauritius government the exact nature of the business the Mauritius subsidiaries are engaged in.
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