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    HomeNewsCourt grants minimal relief to Vodafone Idea

    Court grants minimal relief to Vodafone Idea

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    India’s Supreme Court asked the Income Tax department to refund €88.3 million (Rs 733 crore); the operator had requested €578.5 million rebate.

    Vodafone Idea’s struggles with the Supreme Court continue.

     It had claimed a refund €88.3 million for its tax assessment in the years 2014-2015 to 2017-18.

    The rebate granted was for the financial year 2014 to 2015.

    More funding

    Last week it received $200 million from its parents’ indemnity fund: Nick Read, CEO, Vodafone Group, has reiterated that no more equity would be forthcoming from his company.

    Although this is a relatively minor knockback from the Supreme Court, Vodafone Idea’s future remains uncertain, as the Court has ruled it must pay over Rs 51,000 crore (about €6.3 billion) in so-called adjusted gross revenue (AGR) dues to the government, with whom it has been locked in tax-related disputes for years.

    As Read noted, less than a sixth of this total is the principal – the rest has accrued from penalties, fees and interest.

    The amount owing includes the sum of Rs 20,000-crore that the government says is withheld tax relating to the acquisition of a stake in Hutchison back in 2007, when the firm was known as Vodafone Mobile Services Ltd.