Vodafone India H1 revenue jumps 13.3%

The Group did not carry a provision for the litigation or in respect of the retrospective legislation at September 30, 2012 or at previous reporting dates, it added.

Vodafone India registered strong growth in data revenues at 12.4 per cent in first half. The active data customers totalled 32 million, including about 2.1 million 3G data customers as on September 30, 2012.

According to a Vodafone Plc statement, voice revenue from India stood at GBP 1,582 million, while messaging revenue was GBP 74 million, data revenue GBP 168 million and fixed line revenue GBP 9 million during first half.

Vodafone makes no provision for Hutch deal tax claim

British telecom giant Vodafone has decided against making a provision in its balance sheet for the over Rs 11,000 tax claim made by Indian authorities for its 2007 deal to acquire stake in Hutchison-Essar.

"The Group did not carry a provision for the litigation or in respect of the retrospective legislation at 30 September 2012 or at previous reporting dates," Vodafone Group said in its first half financial results filing.

The Income Tax Department had raised a Rs 11,218 crore tax demand (including Rs 7,900 crore tax demand and the remaining interest) from Vodafone for its acquisition of Hutchison stake in Hutchison-Essar in 2007 through a deal in Cayman islands.

But the Supreme Court struck down the tax claim.

Following the Supreme Court judgement, the government in the Finance Bill, 2012 proposed amendments to the Income-tax Act, 1961, with retrospective effect to bring under tax net overseas mergers and acquisitions involving Indian assets.

In April 2012, a Dutch Subsidiary of UK-based Vodafone served a 'dispute notice' to the Indian government, threatening international arbitration under the Bilateral Investment Treaty (BIT).

The Group said it is also confident of making a successful claim under the Dutch-India Bilateral Investment Treaty in case it receives any further tax demands.

... contd.

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