Japanese telecom gaint Softbank recorded a loss of $350 million for last nine months of 2016 in the fair value of the Company’s investments in India. The loss comes on top of a $555 million writedown on the value of Softbank’s India portfolio in the six-month period ending September 2016. “With reference to the current markdown, portfolio…
Vodafone’s tax battles in India have been exacerbated, with the nation’s Income Tax Appellate Tribunal ruling that it has jurisdiction to hear a case related to an 85 billion rupee ($1.36 billion) transfer pricing dispute.
The tribunal has determined to arbitrate the dispute, but has sent the case back to tax officials to decide on the revised taxable amount before doing so, the Economic Times reported.
Tax officials’ estimates for the valuation of the transaction have also not been accepted.
With the decision, the Tribunal has ruled that the sale of Vodafone India’s call centre business to Hutchison Whampoa Properties and an issue of call options to parent Vodafone International were considered an international transaction.
This means that India’s regulations on transfer pricing apply to the case, according to the Tribunal’s decision. Original post at Telecom Asia