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MUMBAI: India<\/a>'s income tax<\/a> authorities have demanded over Rs 32,300 crore from Hutchison Holdings in taxes, interest and penalty on the alleged gains the Hong Kong company made by selling its Indian mobile phone business to Vodafone<\/a> Group Plc back in 2007, for about $11 billion.\n
In a local stock exchange filing, CK Hutchison<\/a> Holdings has said its unit, Hutchison Telecommunications International (HTIL), has been served with a tax demand of about Rs 7,900 crore, Rs 16,430 crore interest and another Rs 7,900 crore in penalty, one which the company disputes.
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\"Legal advice obtained by HTIL continues to be that the above-mentioned orders of Indian tax authorities) issued on the basis of retrospective legislation seeking to overturn the judgement of the Supreme Court of India<\/a> in January 2012, which ruled that the acquisition was not taxable in India, are in violation of principles of international law,\" Hutchison in its filing. \"Accordingly, the company continues to believe the above-mentioned orders would not have any effect on the company's financial condition or results of its operations for any period,\" it added.
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\nThis is the first time that India has raised a tax demand from Hutchison, having so far only chased Vodafone<\/a> for paying tax on the deal through which the UK telco entered India.
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\nIndian tax authorities had asked Vodafone to pay Rs 7,900 crore for not withholding tax from its payments to Hutchison when the deal for 67 per cent stake in the telco was closed. Outstanding amount from Vodafone, including interest and penalty, runs over Rs 20,000 crore. The UK-based company challenged this charge and the matter went to the Supreme Court, which, in 2012, ruled that the telco was not liable to pay any taxes over the acquisition of assets in India from billionaire Li Ka-shing's Hutchison.
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\nIn May that year, tax laws were amended with retrospective effect and demands were raised again. Vodafone disputed this levy and the matter is before an international arbitration panel.
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\n\"This is an ongoing litigation on account of withholding tax obligation of a payer (Vodafone) which matter is under arbitration in the UK. The result of the arbitration will decide whether Vodafone has any withholding tax liability in India or not. The same will also be true for Hutchison as a seller of shares,\" said Uday Ved, former tax head of KPMG, who now runs his own boutique consultancy.
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\nHTIL said it had received a draft assessment order from the Income Tax<\/a> Department on November 24, alleging gains made on sale of its entire stake in the India business to Vodafone. The draft order alleged gains of about Rs 37,400 crore in the sale to Vodafone International Holdings BV.
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\n\"HTIL received on February 13, 2017 from the Income Tax (Department) an assessment order dated January 25, 2017 in respect of tax of approximately Rs 7,900 crore on capital gains in connection with the deal,\" the company said in its filing to the Hong Kong stock exchange. In addition, demand for a total interest of around Rs 16,430 crore was also raised.
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\nFurther, \"HTIL received on August 9 from income tax authorities a penalty order dated July 3, 2017 for a penalty of approximately Rs 7,900 crore,\" it said.
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\nConcerning the impact of these tax laws on the investment climate in India, Ved said, \"The government is absolutely within its rights to levy tax or withholding tax obligations. However, retrospective change in finance at 2012 has created negative sentiments on foreign investments at that point of time.\"\n\n<\/body>","next_sibling":[{"msid":60274274,"title":"Mobile Internet remains suspended in \"sensitive\" parts of Haryana","entity_type":"ARTICLE","link":"\/news\/mobile-internet-remains-suspended-in-sensitive-parts-of-haryana\/60274274","category_name":null,"category_name_seo":"telecomnews"}],"related_content":[],"msid":60274287,"entity_type":"ARTICLE","title":"Income Tax department seeks Rs 32,320 crore from Hutchison over Vodafone deal","synopsis":"The tax department on January 25 this year issued the final assessment seeking Rs 7,900 crore in taxes on capital gains made in the Rs 16,430 crore deal.","titleseo":"telecomnews\/income-tax-department-imposes-rs-7900-crore-penalty-on-vodafone-for-tax-dues","status":"ACTIVE","authors":[],"Alttitle":{"minfo":""},"artag":"ET Bureau","artdate":"2017-08-29 14:05:01","lastupd":"2017-08-30 08:36:00","breadcrumbTags":["vodafone","Vodafone India","CK Hutchison","Policy","income tax","supreme court of india","india","Hutchison Whampoa"],"secinfo":{"seolocation":"telecomnews\/income-tax-department-imposes-rs-7900-crore-penalty-on-vodafone-for-tax-dues"}}" data-authors="[" "]" data-category-name="" data-category_id="" data-date="2017-08-29" data-index="article_1">
孟买:印度的所得税当局已经要求超过32300卢比从和记黄埔控股的税,对所谓的收益利息和罚款的香港公司出售其印度手机业务沃达丰(Vodafone)集团早在2007年,大约110亿美元。在当地证交所提交,CK和记Holdings)表示,其单位,和记电讯国际(和记电讯国际),与税收服务需求约为7900卢比,16430卢比的兴趣,另一个在罚款7900卢比,一个公司的纠纷。
“和记电讯国际仍然是获得的法律建议,印度税务机关)发布了上述订单的基础上回顾立法试图推翻的判断印度最高法院2012年1月,统治,收购不是应税在印度,是违反国际法的原则”,和记黄埔在其申请。“因此,该公司将继续相信上述订单不会有任何影响其业务的公司的财务状况或结果对于任何时期,”它补充道。
这是第一次,印度提出了税收和记的需求,目前为止,只有追逐沃达丰(Vodafone)支付的交易征税,英国电信进入印度。
印度税务当局已要求沃达丰7900卢比支付时没有从其支付代扣所得税和记电信67%的股份的交易关闭。从沃达丰债务总额,包括利息和罚款,跑超过20000卢比。英国公司挑战这个电荷和物质去最高法院,这在2012年裁定,电信没有责任支付任何税收的收购资产在印度亿万富翁李嘉诚的和记黄埔。
当年5月,税法与回顾修订效果又提出了要求。沃达丰争议之前这税,这件事是一个国际仲裁小组。
“这是一个正在进行的诉讼的代扣所得税义务的付款人(Vodafone),问题是在在英国仲裁。仲裁的结果将决定是否沃达丰有任何预提税责任在印度。同样也将适用于和记黄埔作为卖方的股票,“Uday Ved说,毕马威前税务主管,现在经营着自己的专业咨询公司。
和记电讯国际表示,它已收到草案评估订单的所得税部门11月24日声称获得了出售其全部股份沃达丰的印度业务。草案秩序所谓收益约37400卢比的出售沃达丰国际控股BV。
2017年2月13日,“和记电讯国际收到从所得税(部门)评估订单日期为1月25日,2017年的税收大约7900卢比在资本收益与交易有关的,”该公司表示在其提交给香港交易所。此外,总利息约16430卢比的要求也提高了。
进一步,和记电讯国际在8月9日收到收入税务机关处罚订单日期为7月3日,2017年大约7900卢比的罚款,”它说。
关于这些税法的影响在印度的投资环境,表示,“政府是绝对在其权利征收税或代扣所得税义务。然而,回顾2012年金融学变化创造了对外国投资的负面情绪在这一点上的时间。”
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