Vodafone, which has equity interests in 25 countries besides India where it bought controlling stake in Hutchison Essar early this year, said its capital expenditure on fixed assets this fiscal would be around 4.7-5.1 billion.
The government, however, amended the tax laws with retrospective effect to undo the Supreme Court judgement and claim taxes.
The Foreign Investment Promotion Board will take up on March 20, the proposal of UK mobile giant Vodafone to acquire 52 per cent direct stake in Hutchison-Essar from Hong Kong-based Hutchison Telecom based on an enterprise value of $18.8 billion.
Granted 6-month relief, subject to interim payments and guarantee, on Rs 3,700-cr demand for alleged transfer pricing in FY09.
Representatives of the British telecom company on Friday met senior finance ministry officials, in search of an amicable solution.
The company would also increase its head count by ten fold to 10,000 in the next three years from the current 1000.
Vodafone appointed to its board on Thursday a former group managing director at HTIL's parent company Hutchison Whampoa.
The Foreign Investment Promotion Board has expressed dissatisfaction with the replies given by Hutchison Essar, its Hong Kong-based parent Hutchison Telecom International
The Finance Ministry is of the opinion that Vodafone might drag its tax dispute to court.
The admission comes as it seeks to ensure approval of the deal by Indian regulators under restrictive foreign investment laws.
The Bombay High Court on Thursday deferred till August 2 the hearing on an appeal filed by Vodafone International challenging income tax department's decision to levy tax on the company for acquiring stake of Hutchison International in Hutchison-Essar in a $11.1 billion deal in February 2007.
The company will spend Rs 10,141 crore to buy 15.5 per cent stake from minority investors.
The government, however, amended the tax laws with retrospective effect to undo the Supreme Court judgement and claim taxes.
The police had filed charges in December against Bharti Airtel and Vodafone's India unit.
The letter was written on February 20, two weeks after the Cabinet Committee of Economic Affairs had approved the 100 per cent ownership proposal of Vodafone Plc in Vodafone India, at a proposed investment of Rs 10,141 crore (Rs 101.41 billion).
Vodafone CEO Arun Sarin on Wednesday discussions with Commerce Minister Kamal Nath, who asked the UK telecom giant to follow best commercial practices in its bid to acquire Hutch-Essar.
In a report, JP Morgan said Vodafone needed to raise exposure to high-growth emerging markets and offset prospective fall in EBITDA in Europe.
Finance Minister P Chidambaram has asked UK-based Vodafone Group, which is facing a tax liability of over Rs 11,200 crore in India, to give its view on the long-pending matter in writing, a senior official said.
While it was technically not possible to block the deal, the tax department could resort to arm-twisting.
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Faced with over Rs 11,200 crore (Rs 112 billion) tax liability, Vodafone India chief Analjit Singh on Thursday met Finance Minister P Chidambaram for the second time this week and expressed the hope that there will be clarity soon on the proposal to settle the dispute through conciliation.
The Foreign Investment Promotion Board (FIPB) on Monday deferred a decision on Vodafone's Rs 10,141 crore (Rs 101.41 billion) proposal to buy out minority shareholders in its Indian arm as the Ministry of Home Affairs is yet to give its comments.
The UK on Tuesday assured complete government neutrality on Tata Steel's bid to acquire Corus and sought similar treatment for British telecom firm Vodafone in its bid to acquire mobile venture Hutchison-Essar.
Vodafone, according to sources, in its response to the Finance Ministry's offer for conciliation, had expressed keenness to settle the long-pending capital gains tax dispute.
The IT department had issued a tax assessment order in December 2011 asking Vodafone to add Rs 8,500 crore (Rs 85 billion) to its taxable income, thus raising the tax liability of the company.
The IPO is expected to bring handsome fees for the selected banks at a time when billion-dollar listings have become scarce
A three-judge bench headed by Chief Justice S H Kapadia asked the company to file its representation before the IT department.
In 2013-14, India became the third-largest contributor to Vodafone Group's service revenue and operating free cash flow.
To bring clarity, the department clearly defines terms such as promoter and competitor.
Likely to seek FIPB approval to raise holding; deal could bring FDI of about $696 mn.
Country accounts for 38% of telco's global user base, 10% of total revenue
A bench headed by Justice H L Dattu, however, allowed the petitioner, former Additional Solicitor General Bishwajit Bhattacharyya, to file fresh petition with all the relevant documents stating what action Centre has so far been taken on the issue.
World's second largest mobile operator Vodafone Plc of UK on Tuesday sought FIPB approval to invest Rs 10,141 crore (Rs 101.41 billion) in raising its stake in the Indian arm to 100 per cent.
The Bombay High Court on Thursday stayed a new income tax demand of Rs 3,000 crore (Rs 30 billion) on Vodafone India Services in an alleged transfer-pricing case from 2010-11.
Besides Vodafone, several other major MNCs like Nokia and Shell were locked in tax dispute with the revenue department.
Advertising industry watchdog ASCI upheld complaints against 82 campaigns in June for misleading ads, including those of Flipkart, Uber, Snapdeal, Vodafone.
Lenders, with Rs 600-cr exposure to telco, want it to sell properties to repay loans.
While smart boys like the Ruias of Essar, Ajay Piramal, Max India promoter Analjit Singh laughed all the way to the bank, the Tatas, Anil Ambani, Malaysian tycoon T Ananda Krishna of Maxis (which invested in Aircel), Sistema, and Norway's Telenor burnt their fingers, notes Surajeet Das Gupta.
Vodafone CEO Arun Sarin on Thursday met key members of the Ruia family, as part of efforts to woo the Essar Group to ensure smooth sailing of mobile venture Hutch-Essar, where the UK company is acquiring majority stake.
Arun Sarin is the chief executive officer of Vodafone Group Plc, the United Kingdom-based global mobile operator.
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