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 2025

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

The president’s tariff regime has already caused misery for taxpayers. Losing at the Supreme Court would mean it was all for nothing
The US itself was the biggest loser of tax revenue to American multinationals’ profit shifting, the Tax Justice Network reported; in other news, firms made key tax hires
Identifying who will bear the costs and concerns around confidentiality are issues yet to be resolved, advisers say
As multinationals embed tax technology into their TP functions, a new breed of systems – built on multi-model databases – is quietly transforming intercompany pricing logic
The president described it as ‘one of the most important cases in the history of our country’; in other news, Portugal established a VAT group regime
Clients are facing increased TP audit scrutiny in Hungary. DLA Piper Hungary is therefore using AI and advanced analytics to augment its advice, the firm’s head of TP says
Simpson Thacher & Bartlett and MinterEllisonRuddWatts were among the firms that advised on the deal
AI will mean fewer entry-level roles in tax but also the emergence of new jobs, according to tax expert Isabella Barreto
As World Tax unveils its much-anticipated rankings for 2026, we focus on standout performances by PwC, KPMG and Deloitte across the Asia-Pacific region
The partnership model was looking antiquated even before the UK chancellor’s expected tax raid on LLPs was revealed. An additional tax burden may finally kill it off
Gift this article