Like Cairn Energy, Vodafone to pay penalty tax?

Mumbai, Sep 9: The day when Cairn Energy Plc agreed to pay all taxes to India and UK, Vodafone Intenational also confronted to pay Rs 12,000 crore tax on Wednesday, Sep 8.

The Bombay High Court on Sep 8, dismissed Vodafone's plea that challenged Income Tax Department Rs 12,000 crore demand in tax and penalty on $ 11 billion (about Rs 50,000 crore) takeover of Hutchison Telecom.

However, the court provided chance to the company to argue before tax department for issuing no penalty.

The tax department imposed a tax of about Rs 8,000 crore and another Rs 3,500 crore as penalty, informed source.

Vodafone, through its group firm Vodafone International Holdings, in 2007 bought Hutchison Telecommunications India Ltd's (HTIL) stake in Hutchison Essar in 2007 for over $ 11 billion.

Indian conglomerate Essar holds about 33 per cent stake in Vodafone India.

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