Vodafone to not pay INR 3200 additional tax as per Bombay HC ruling

Q.  The Cabinet of India accepted the order of the High Court of Bombay dated 10.10.2014; and not to file SLP against Vodafone India Services Pvt. Ltd before the Supreme Court of India. What was the order of High Court of Bombay?
- Published on 23 Jan 15

a. Vodafone liable to pay Rs 320 crore in additional tax in a transfer pricing case
b. Vodafone liable to pay only Rs 3,200 crore in additional tax in a transfer pricing case
c. Vodafone is not liable to only Rs 32 crore in additional tax in a transfer pricing case
d. Vodafone is not liable to pay Rs 3,200 crore in additional tax in a transfer pricing case.

ANSWER: Vodafone is not liable to pay Rs 3,200 crore in additional tax in a transfer pricing case.
 
The High Court had in its October 10, 2014 order handed a big relief to the UK-based mobile service provider by ruling that it is not liable to pay the income tax demand of Rs 3,200 crore.

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