The Indian Income Tax department has slapped a penalty of Rs 7,900 crore on the tax demand of the same amount on CK Hutchison Holdings Ltd for the sale of its mobile phone business to Vodafone Group Plc in India.
"HTIL (Hutchison Telecommunications International Limited) received on February 13, 2017, from ITA (Indian Income Tax department) an assessment order dated January 25, 2017, in respect of tax of approximately Rs 79 billion (HK$9.6 billion) on capital gains in connection with the acquisition plus aggregate interest on the CGT of approximately Rs 164.3 billion (HK$20 billion)," the company said in a filing in Hong Kong stock exchange.
"HTIL received on August 9, 2017, from ITA a penalty order dated July 3, 2017, for a penalty of approximately Rs 79 billion (Rs 7,900 crore)," the statement added.
"For the reasons set out in the announcement, HTIL continues to believe that the taxes cannot be validly imposed on HTIL," the statement added.
In 2007, Vodafone had acquired 67 per cent stake in the cellular business of Hutchison Whampoa, which is now part of CK Hutchison.
--IANS
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