The taxman has alleged that the company did not pay capital gains tax when shares changed hands during an internal group restructuring in fiscal year 2007.
Foreign multinationals often provide their Indian subsidiaries technical assistance and allow them to use their trademarks and brand name.
Last year in September, the US-based firm had announced it will acquire almost all of the Devices and Services business of Nokia for USD 7.2 billion.
British telecom major Vodafone had acquired Honk Kong-based Hutchison Whampoa‘s stake in Indian telecom major, Hutchison Essar (famously known as Hutch) in 2007. The Rs 11,200 crore tax liability issue is based on this acquisition.
The income tax department has sought the opinion of the country's top law officers on the manner in which it should proceed against Vodafone on the tax issue.
The government has not given any direction to tax authorities to reopen a tax case against Vodafone or similar cases, MoS Finance said SS Palanimanickam on Tuesday.
In an exclusive interview to CNBC-TV18, Analjit Singh, chairman, Vodafone talks about the company's plan to stay put in India He also shares his view that, as a practising businessman, the sudden change in rules will not auger well for foreign direct investment and country at large.
In an exclusive interview to CNBC-TV18, Analjit Singh, chairman of Vodafone India says that despite the legal tussles, Vodafine remains committed to India. “There is no question of pulling out of India,” he says.
Once bitten, twice the shy, they say. But the government decided to give itself another go at Vodafone after the Supreme Court ruled in favour of the company in January in the Rs 11000 crore tax case. And again, the government has been restrained as the SC dismissed the review plea. CNBC-TV18 talks to tax experts for their first reaction.
Mahindra Satyam touched an intraday high of Rs 92.95 and an intraday low of Rs 89.80. At 13:28 hrs the share was quoting at Rs 91.90, up Rs 1.60, or 1.77%. Supreme Court gave interim relief to Mah Satyam in tax case. It gave option to move Andhra Pradesh High Court against CBDT, reports CNBC-TV18.
Mahindra Satyam is likely to resubmit appeal in tax case to supreme court on April 15. The company withdrew earlier tax appeal after SC observations, quoting Sources, reports CNBC-TV18. It touched an intraday high of Rs 77 and an intraday low of Rs 75.65. At 13:35 hrs the share was quoting at Rs 75.85, down Rs 0.85, or 1.11%.