Essar will have to pay capital gains tax, as the company will be gaining from the deal.
In a bid to increase efficiency, telecom major Vodafone Essar is set to relocate over 1,500 of its employees to Ahmedabad from all over the country.
No hybrid name, exercise to begin this week.
Vodafone said on Wednesday it has completed the acquisition of controlling stake in Hutchisson-Essar Ltd while paying a less amount at $10.9 billion as against $11.8 billion announced earlier.
The government on Friday cleared British telecom firm Vodafone's application for buying a majority stake in India's fourth-largest mobile operator Hutch-Essar Ltd.
Global telecom major Vodafone's minority partner in India, Analjit Singh, may take over as the chairman of the group's Indian operations, after Essar group exits the venture.
The Income Tax deparment has sent a notice to Vodafone, seeking around $1.7 billion in capital gains tax related to the sale of Hutchison Telecom International Ltd's 67 per cent stake in Hutch-Essar, now renamed Vodafone-Essar.
As a prelude to a new partnership agreement, senior Vodafone and Essar executives have held joint meetings with officials in the government, including the finance ministry.
Announces 50% cut in prepaid monthly recharge.
Vodafone on Wednesday said it will offload its entire 3.2 per cent shareholding in China Mobile, a divestment that will fetch the British telecom major about 4.3 billion pounds.
UK-based Vodafone Group has ruled out selling its around 5 per cent stake in the holding company of Bharti Airtel in the near future as there is no buyer.
The department had initiated proceedings against Vodafone and TTSL in 2011 on the ground that the companies had allegedly failed to deduct tax deducted at source (TDS) for those assessment years.
The 64-year-old German, who has spent nearly four decades at Philips and around 10 years in the top position, will retire from the company on March 31 and will also be appointed as non-executive director at Vodafone on April 1.
TDSAT had stated no amount was payable till resolution of the disputes.
Aditya Birla group chairman Kumar Mangalam Birla has offered to hand over his stake in debt-laden Vodafone Idea Ltd (VIL) to the government or any other entity that the government may consider worthy to keep the company operational. The billionaire businessman made the offer in June in a letter to Cabinet secretary Rajiv Gauba. According to official data, VIL had an adjusted gross revenue (AGR) liability of Rs 58,254 crore out of which the company has paid Rs 7,854.37 crore and Rs 50,399.63 crore is outstanding.
Announces 50% cut in prepaid monthly recharge.
Dutch subsidiary Vodafone International Holdings BV on Tuesday severed a notice of dispute on the Indian government regarding proposals in the Finance Bill 2012 which it claimed violated the international legal protections granted Vodafone and other international investors in India.
Vodafone had in December last year sought extension of its licence period for Delhi, Mumbai and Kolkata circles, which are coming up for renewal in November 2014.
It also issued notice to the Centre and the IT department on Vodafone's plea.
Bharti Airtel on Tuesday welcomed the decision of the directors of Vodafone to abstain from its board meeting, in view of the UK-based telecom major's interest in acquiring rival Hutch-Essar.
Piraml will sell of its entire 11 per cent stake in Vodafone india.
Experts say the impact on the schemes' NAVs may vary in the coming days, depending upon how fund houses treat the developments on VIL and whether there are any further rating downgrades or credit events.
Telecom services providers have urged the Ministry of Finance to suspend the universal service obligation (USOF) till the existing corpus is exhausted. In their Budget recommendations, they have also pressed for an exemption from the service tax on "assignment of right to use natural resources" and the slashing of Customs duty on telecom equipment to zero. The Cellular Operators Association of India (Coai), which represents private sector telecom operators Reliance Jio, Bharti Airtel, and Vodafone Idea, called for abolishment of USOF levy.
Agency reports said Hutchison Whampoa had received bid interest in its Indian mobile business, but that the prices indicated so far were too low.
His comments come little over a week after Vodafone sold its entire 3.2 per cent shareholding in China Mobile Ltd for about 4.3 billion pounds.
Call drop problem to improve in 12-16 weeks in Delhi: Vodafone
The move to sell the jewel in Vodafone's crown closes a heady expansionist chapter for one of Britain's most famous companies
In a Diwali bonanza to its customers, Vodafone India on Thursday said it has slashed data rates by up to 80 per cent across the country, with effect from November 1.
The dispute over the tax payable for its purchase in 2007 of the 67 per cent stake in Hutch is on an amount of Rs 11,200 crore (Rs 112 billion).
Ruias have rights to tag along with Hutch in any sale.
A shareholder of Vodafone Group has urged the company to abandon its plans to acquire India's Hutch Essar, saying the British telecom giant could overpay for the deal, British daily The Times reported on Friday.
Delaying GAAR is seen as a move partly designed to help solve Vodafone dispute.
British mobile operator Vodafone will end its seven-year title sponsorship of Formula One team McLaren at the end of 2013, the team said on Thursday.
Five months before the put option window closes, JP Morgan has come out with a report stating that Essar's stake in Vodafone Essar is around $2 billion, which is far less than what the shareholder agreement between the two companies in 2007 envisaged.
The IPO is expected to bring handsome fees for the selected banks at a time when billion-dollar listings have become scarce
Vodafone's focus is to increase consumer data adoption along with Micromax's product expertise, it said in a statement.
Ambani to up ante by $3 bn on Ruia's hint at larger premium.
In what could be the cheapest mobile handset and a market gimmick to increase its subscriber base, leading telecom service provider Vodafone on Wednesday unveiled a mobile handset priced at just Rs 799.
After Finance Minister P Chidambaram's indication the tax department would not act rashly on the issue, the company on Thursday said it was ready to discuss a solution with the government.
The two parties -- the Centre and Vodafone -- have sought a few more weeks to decide on the matter.
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