Vodafone involved in yet another Indian dispute

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2026

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Vodafone involved in yet another Indian dispute

Vodafone has become embroiled in yet another Indian tax dispute after being forced to pay $821 million "under protest".

The telecommunications company paid Rs3,900 crore relating to its purchase of a 33% stake in its Indian mobile phone joint venture Vodafone-Essar. The deal was worth $5.4 billion.

The Mumbai tax authorities confirmed that the payment had been made under protest meaning that Vodafone will contest the tax demand. This means that the company will be spared the interest liability if it loses the case.

In the dispute, Essar and Vodafone both argue that they do not have to pay any Indian tax on the transaction.

This case differs to the issue being disputed at the Supreme Court because Vodafone did not deduct tax and claim exemption on the grounds that this is an international transaction.

More to follow...

For full coverage of Vodafone’s Supreme Court hearing, follow www.internationaltaxreview.com

more across site & shared bottom lb ros

More from across our site

As pillar two reshapes global tax competition, the UK faces a crucial challenge: how to remain attractive to multinationals without sacrificing tax revenues
Pillar two may be raising less than expected, but professor René Matteotti says the regime is still changing multinational tax behaviour
Multinationals importing goods into Brazil may need to align TP files and customs documentation more closely as authorities gain new tools to challenge related-party transactions
The private equity-backed deal hands Grant Thornton immediate and impressive US scale, but World Tax data suggests the firm still has work to do to gain recognition
From Instagram content to £100m transactions, the founder of Thomas & Co International discusses building a modern tax and accounting firm for business founders
Growing GAAR scrutiny is driving taxpayers to look beyond legal form and demonstrate the commercial rationale underpinning tax-efficient structures
Pillar two has been clients’ ‘biggest headache’ but also a driver of growth for MHA, which believes it has the edge over its big four rivals
Public country-by-country reporting is exposing multinational tax data to investors, journalists and competitors, creating fresh risks for businesses
Pillar two compliance is creating unprecedented data demands for multinational tax departments, making closer collaboration with FP&A teams essential for accurate reporting and audit readiness
Among the arrivals is Andrew Howell, who leaves scandal-hit PwC Australia after representing PepsiCo in a high-profile TP dispute
Gift this article