New Delhi: The government today asked Vodafone to pay about Rs11,218 crore in taxes for the purchase of Hutchison Whampoa Ltd's mobile business in the country in 2007. The payment is to be made within a month, PTI reports.
"The I-T department today issued an order raising a tax demand of Rs11,217.95 crore on Vodafone International Holdings BV, treating it as an assessee in default... for failure to deduct tax as required before making a payment of $11,076 million (about Rs55,000 crore) to Hutchison Telecommunication International Ltd," the department said in a statement.
The Supreme Court had asked the tax department to determine by 25 October the tax liability over the deal. The Court is expected to set a date on October 25 to hear Vodafone's appeal challenging a lower court ruling that Indian tax authorities had jurisdiction on tax payments in cross-border deals. Vodafone had bought Hutchison's stake in the Hutchison-Essar mobile services joint venture in India.
BAJAJ AUTO (Q2)
Net sales: Rs43.42 billion (expected range Rs41.20 billion-Rs43.22 billion)
Net profit: Rs6.82 billion (expected range Rs6.32 billion-Rs7 billion)
HCL TECHNOLOGIES (Q1)
Net sales: Rs36.12 billion (expected range Rs34.96 billion-Rs36.40 billion)
Net profit: Rs2.99 billion (expected range Rs2.78 billion-Rs3.39 billion)
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Hyderabad: The Andhra Pradesh High Court today rejected petitions by the microfinance (MF) industry to quash an ordinance which, they claimed, curbed their freedom, and asked MF institutions (MFIs) to carry on their business in compliance with the new rules.
The Court directed the institutions to register themselves with the government within a week, as mandated in the ordinance. The petitions were filed by Microfinance Institutions Network (MFIN), SKS Microfinance and Spandana Microfinance, PTI reports. They contended that the state was encroaching into an area already regulated by the Reserve Bank of India Act and other central laws.
A division bench of Chief Justice Nisar Ahmad Kakru and Justice Vilas V Afzalpurkar said that the companies can carry out day-to-day activities, and that the government could book cases in the event of violation of sections 9 and 16 of the Andhra Pradesh Microfinance Institutions (Regulation of Money Lending) Ordinance 2010. The ordinance was promulgated last week.
Under section 9 of the ordinance, MFIs are barred from charging interest in excess of the principal amount, irrespective of whether the loan was given out before or after commencement of the ordinance. According to section 16, all persons connected with and responsible for the day-to-day control, business and management of an MFI, including partners, directors and employees who resort to any type of coercive measures against self-help groups, group members or their family members, shall be liable for punishment with imprisonment which may extend up to three years, or a fine which may extend to Rs1 lakh, or both.
P Niroop Reddy, counsel for MFIN, said that the court had also directed the government not to arrest loan recovery officials of the company when they go for collections. Last night, three employees of SKS Microfinance and Spandana were arrested on a complaint of harassment by a borrower.
"After investigation, we came to know that the recovery officials were acting under the instructions of their company management. So under the new ordinance, Vikram Akula (founder and chairman of SKS Microfinance) and Padmaja Reddy (promoter of Spandana Microfinance) may also be included in the case," CH Srikanth, superintendent of police (Kurnool) told PTI.