IT raises demand of Rs.11,218 crore on Vodafone

The Income Tax (IT) department on Friday issued an order raising a tax demand of Rs.11,217.95 crore on Vodafone International Holdings BV.

The tax demand was raised after treating it as an assessee in default under section 201(1) of the Income Tax Act, 1961 (the Act) for failure to deduct tax as required under section 195 of the Act before making a payment of USD 11,076 million to Hutchinson Telecommunications International Limited, said officials on Friday.

The tax demand is to be paid within 30 days of the receipt of the notice of demand.

The tax demand has been raised in pursuance to the direction of Supreme Court of India dated 27 September to the Income Tax Assessing Officer to determine and quantify the tax liability of Vodafone within four weeks.