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
  • DJI26135.79249.780.96%
    NASDAQ8002.81106.821.35%
  • NIKKEI 22520677.22114.060.55%
    Hang Seng26231.54-60.30-0.23%
    DAX11671.99-43.38-0.37%
  • USD (PER EUR)1.11-0.0005-0.04%
    USD (PER CHF)1.020.00110.11%
    JPY (PER USD)106.28-0.3180-0.30%
    GBP (PER USD)1.21-0.0033-0.27%