JOIN US The High Court, on Thursday, directed the Commissionerate of Income Tax Appeal to dispose off the petition regarding tax deduction at source (TDS) by Vodafone South Limited, mobile service provider, in connection with payments made to foreign companies with respect to roaming charges at the earliest.
Vodafone, according to Income Tax department, owes Rs 265 crore in TDS for the period between 2008-2012.
Hearing a petition by the company, Justice Ram Mohan Reddy directed the Commissionerate of Income Tax Appeal to dispose off the matter before March 20, while directing all the parties to be present before the Commissionerate until the matter is disposed off.
Senior Supreme Court advocate Abhishek Manu Singhvi, who appeared on behalf of Vodafone submitted that the company is not in India and is providing service in the country without using any infrastructure.
However, the counsel for income tax submitted that the firm has inter-connection with other companies, which means that they are using their infrastructure and the income tax accrues through these agreements as per Section 5 (1) and 9 (2) of the Income Tax Act.