Vodafone Idea seeks Rs 7,000-cr tax refund

New Delhi, November 19 

Vodafone Idea is seeking about Rs 7,000 crore in tax refunds for past years even as it faces fresh statutory dues liability — running into thousands of crore — that has put the income tax department in a bind, sources privy to the development said.

The tax department has in past adjusted refunds against a company’s other liabilities towards the government. It had famously adjusted Rs 1,500 crore in tax refunds due to Cairn Energy plc of UK to part settle a retrospective tax demand of Rs 10,247 crore even though the matter was under arbitration.

Sources said Vodafone has to receive an aggregate of about Rs 1,000 crore from Mumbai unit of the Income Tax Department and another Rs 6,000 crore from its Delhi office for multiple assessment years dating back to 2004-05.

The company has got favourable rulings from high courts and appellate tribunals in some and is now pressing the department to quickly refund the dues, they said. — PTI

Income tax dept caught in bind

• Sources said Vodafone has to receive an aggregate of about Rs 1,000 crore from Mumbai unit of the Income Tax Department and another Rs 6,000 crore from its Delhi office for multiple assessment years dating back to 2004-05
• The I-T Department is, however, caught in a bind as Vodafone-Idea has to pay Rs 44,150 crore to the government in past statutory dues following the Supreme Court ruling that non-telecom revenues have to be included for calculating the payout towards licence fee and spectrum usage charge