Apex court asks Vodafone to deposit Rs. 2,500 crore
Tuesday, November 16, 2010
The Hindu
Apex court asks Vodafone to deposit Rs. 2,500 crore
NEW DELHI: The Supreme Court on Monday asked Vodafone LLC to deposit Rs.2,500 crore and a bank guarantee of Rs.8500 crore in its ongoing case here in which the U.K. based telecom giant has challenged capital gains tax of Rs.11,000 crore from its acquisition of Hutchison shares.
The bench headed by Chief Justice S. H. Kapadia directed Vodafone to deposit Rs.2,500 crore within three weeks and a bank guarantee of Rs.8,500 crore within eight weeks.
The bench, which comprised justices K. S. Radhakrishnan and Swatanter Kumar, also held that if the case went in favour of Vodafone then the government would have to return the amount to the telecom giant along with interest.
The apex court would start its final hearing in this matter from February 5, 2011.
The apex court also directed the Director General of International Taxation to file an undertaking before the court that the government would refund the amount along with the interest to Vodafone if the company succeeded in the case.
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