Vodafone willing to pay Rs.8,000 crore tax to government

Britain-based telecom service provider Vodafone Thursday said it could pay taxes amounting to around Rs.8,000 crore to the Indian government if the interest and penalty are waived.

"We have made our public position very clear that Vodafone is completely ready to discuss the matter," Analjit Singh, non-executive chairman, Vodafone India, told reporters after a meeting with tax officials here.

"It is an option," he said, referring to payment of taxes.

The Income Tax department has sought over Rs.11,000 crore as tax and interest from Vodafone for acquiring Hutchison stake in Hutchison-Essar in 2007.

The Supreme Court, however, struck down the claim.

After the apex court's ruling, the 1961 Income Tax Act was amended with retrospective effect to bring into tax net such deals.

Finance Minister P. Chidambaram Monday had said the Income Tax department will take a decision on the Vodafone taxation issue after the Shome Committee gives its report on General Anti-Avoidance Rules (GAAR).