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Vodafone tax issue may be re-opened
MUMBAI: The government may re-open withholding tax case involving British mobile phone player Vodafone after the budget clarified the definitions of "property" and "transfer", both of which affected the tax department's jurisdiction on the Vodafone-Hutch transaction.
"The taxability of the indirect transfers has unfolded again through clarificatory and retrospective amendments in the provisions codifying the source base taxation. This will significantly impact the cross border transactions and the debate will again knock the doors of the Court," said Amit Singhania, Principal Associate, Amarchand Mangaldas - India's largest corporate law firm by number of lawyers.
The Finance Bill says property is defined and included "any rights in or in relation to an Indian company;" transfer is defined as "disposing of or parting with an asset or any interest" in property.
A reference to this example will be made in the review petition currently pending with the Supreme Court on the Vodafone tax case, two lawyers said.
http://timesofindia.indiatimes.com/tech/news/telecom/Budget-2012-Vodafone-tax-issue-may-be-re-opened/articleshow/12293007.cms
