Vodafone
taxation controversy in India is not willing to die. Vodafone has
claimed that on Saturday it has received a reminder notice from
Indian tax authorities on disputed tax dues. The dues pertain to the
acquisitions made by Vodafone in the year 2007 of Indian mobile
assets. However, no deadline has been prescribed for the payment by
the tax authorities of India.
Vodafone has given a standard reply by stating that
according to Vodafone’s beliefs no tax is due to be paid by it.
Vodafone is of the firm opinion that no tax is payable on the above
transaction made in the year 2007. Vodafone’s major relief point is
the judgement given by the Supreme Court of India in its favour.
The only option left for India was to formulate and
enact a validation law that can cure the defects pointed by the
Supreme Court while adjudicating the Vodafone’s case. The
government exactly did the same thing by amending 50-year-old tax
laws enabling it to make retroactive tax claims on long-concluded
corporate deals.
The constitutionality of such retrospective
validation law is still to be analysed. However, this retrospective
amendment has once again brought to life the dead Vodafone taxation
controversy.
