<p>"...In the end we are businessmen, if there would be a good compromise we would probably, I guess, Vodafone group, would be willing to accept it," Marten Pieters, CEO, Vodafone India, said in an interview to NDTV.<br /><br />He however asserted that there was no case for levying tax on a deal that was done outside the country and that's "the basic question at the centre of the table."<br />Pieters cautioned that such a move would have a backlash on Indian companies doing similar mergers and acquisitions overseas, because "in retaliation, foreign governments may penalise them."<br /><br />The Income Tax department here has raised a demand of about USD 2 billion on Vodafone for buying majority stake of Hutchison in Hutchison-Essar in 2007 for over USD 11 billion.<br /><br />The British company has challenged the decision and the issue is pending in the Supreme Court. It has already deposited some amount to the apex court pending the decision.<br /><br />Asked if this would act as a deterrent to Vodafone's future plans in India, Pieters said, "...Its really bad news but it is a one off and we are here to stay for the (next) 20 years. Which means I am far more interested in whether the conditions are good for the next two decades, than an old issue which I might not like but it happened."<br /><br />On reactions from Vodafone investors, he said this was bad news when it happened but "that news has been digested by Vodafone and the Vodafone investors, I think the first part of our discussion was about regulatory issues and how does the industry look going forward is much more important."<br /><br />Pieters said, "Businesses and the valuation of businesses is always about the future and not so much about the past..."<br /><br />He said that the issue is being dealt with by Vodafone Group and the Indian tax authorities.</p>
<p>"...In the end we are businessmen, if there would be a good compromise we would probably, I guess, Vodafone group, would be willing to accept it," Marten Pieters, CEO, Vodafone India, said in an interview to NDTV.<br /><br />He however asserted that there was no case for levying tax on a deal that was done outside the country and that's "the basic question at the centre of the table."<br />Pieters cautioned that such a move would have a backlash on Indian companies doing similar mergers and acquisitions overseas, because "in retaliation, foreign governments may penalise them."<br /><br />The Income Tax department here has raised a demand of about USD 2 billion on Vodafone for buying majority stake of Hutchison in Hutchison-Essar in 2007 for over USD 11 billion.<br /><br />The British company has challenged the decision and the issue is pending in the Supreme Court. It has already deposited some amount to the apex court pending the decision.<br /><br />Asked if this would act as a deterrent to Vodafone's future plans in India, Pieters said, "...Its really bad news but it is a one off and we are here to stay for the (next) 20 years. Which means I am far more interested in whether the conditions are good for the next two decades, than an old issue which I might not like but it happened."<br /><br />On reactions from Vodafone investors, he said this was bad news when it happened but "that news has been digested by Vodafone and the Vodafone investors, I think the first part of our discussion was about regulatory issues and how does the industry look going forward is much more important."<br /><br />Pieters said, "Businesses and the valuation of businesses is always about the future and not so much about the past..."<br /><br />He said that the issue is being dealt with by Vodafone Group and the Indian tax authorities.</p>