The tax authorities of India have demanded Vodafone to pay an amount of Rs, 11,218 crores as tax for the purchase of the mobile business of Hutchison Whampoa in the country. This deal by Vodafone to acquire the Indian telecom firm of Hutchison Essar was signed in the year 2007 for an amount of $11 billion.
The tax office also stated that a period of 30 days is given to Vodafone for paying the amount of tax. The tax department has been asked by the Supreme Court of the country to find out the tax liability over the deal by 25th of October this year.
Vodafone has said that it strongly disagrees with the calculation of the tax and they stated that they believe that the company is not liable to pay any tax on the transaction which involves the company transfer which is made outside India. It was also stated by Vodafone that they are not the vendor but the acquirer and thus have got no gain on the transactions.
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