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Thread: Vodafone ignored IT Dept advice
05-03-2012, 11:41 AM #1
Vodafone ignored IT Dept adviceThe Finance Ministry, on Wednesday, sought to reiterate yet again that it was the British telecom major Vodafone that “chose to ignore” the tax department's advice on chargeability of its Hutchison stake acquisition deal to tax in India.
In a rebuttal to reports in a section of the media which implied that Vodafone was not warned by the Income-Tax Department of the tax burden that the transaction would entail, the Central Board of Direct Taxes (CBDT) in a statement said: “…Vodafone cannot say that it had received no communication from the tax department, about the chargeability of the transaction to tax in India. Further, it chose to ignore the advice, received before the conclusion of the transaction, that Vodafone or HTIL should approach the assessing officer under Sec. 195/197 of the Income-tax Act, 1961, for determining the exact tax liability in India”.
The CBDT also went on to point out that all the correspondence in this regard between the tax authorities and Vodafone, including its entities, “are part of the Court records and are thus in the public domain”....being a human...