Court Rules Vodafone Must Pay $2.6 Billion in Taxes in India

British mobile phone operator Vodafone (VOD) was ordered by an Indian court to pay $2.6 billion in taxes on a 2007 transaction that gave it a major presence in the country's mobile phone market.

The court ruled that Vodafone was liable for Indian taxes on the deal, which involved Vodafone buying a majority stake in Cayman Islands-based CGP Investments, which held telecommunications assets in India, BBC News reported. The deal was worth $11.1 billion.

Sponsored Links
Vodafone had argued that since the deal was between non-Indian entities, they shouldn't have to pay Indian taxes.

Vodafone may appeal the decision, which leaves the company with a 120 billion rupees ($2.6 billion) tax bill.



Read Full Story

Markets

DJIA 25,017.44 -395.78 -1.56%
NASDAQ 7,028.48 -219.40 -3.03%
NIKKEI 225 21,583.12 -238.04 -1.09%
HANG SENG 25,840.34 -531.66 -2.02%
DAX 11,113.41 -131.13 -1.17%
USD (per EUR) 1.14 0.00 -0.23%
JPY (per USD) 112.35 -0.09 -0.08%
GBP (per USD) 1.28 0.00 -0.15%
USD (per CHF) 0.99 0.00 -0.05%