Vodafone issued fresh notice by Indian tax authorities
Vodafone Group has been issued a further notice by Indian tax authorities, who are said to be planning to re-assess the company's tax returns for 2009-2010 period, according to reports.
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Citing several sources familiar with the situation, Reuters said the FTSE 100-listed group has 30 days to respond to the notice.
The development comes after the Indian government said at the beginning of the year that it did not plan to appeal a court decision that had ruled in favour of the telecoms giant over claims it had under-priced shares as part of a rights issue.
According to the news wire, one of the sources said: "The revenue authorities have recently issued a notice against Vodafone International Holdings under section 148 of the Income Tax Act seeking re-assessment of tax returns for assessment year 09-10. Section 148 deals with income that has escaped assessment and the tax department is seeking additional revenue in this case.
"Though at this point, the relevant quantum and the trigger for the notice are unknown."
Since the January decision, Indian authorities have worked hard to make it easier for foreign investors to operate in the country.
In 2012 the Indian Supreme Court overturned a long-running court battle centred around a $2.5bn (£1.3bn) tax bill relating to Vodafone's 67% interest in Vodafone Essar, the Indian mobile unit of Hutchison Whampoa in which Vodafone invested over $11bn in 2007.