Vodafone contests Indian tax bill

21st Nov 2009 00:16

UK mobile phone network giant Vodafone has asked for more time to prepare an official response to a $2bn tax bill from the Indian government.The charge relates to a capital gains tax charge relating to Vodafone's 2007 takeover of Indian mobile phone network operator Hutchison Essar.Vodafone is complaining that it has only been given two weeks to respond to a 2,000 page demand from the tax department. The official deadline for a response from Vodafone was last Monday. Vodafone would like the deadline to be extended to January of next year or even later.Vodafone is expected to argue that, although Hutchison Essar is an Indian company, the transaction took place between CPG, a subsidiary of Hutchison Telecommunications, and Vodafone International, neither of which is registered in India, the deal is not subject to capital gains tax.