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'Very clear, thumping, unambiguous verdict for Vodafone'

The Supreme court said that the income tax department has no jurisdiction over the transaction that saw Vodafone buy 67 per cent stake in the then Hutchinson-Essar from Hong Kong’s Hutchinson Group in 2007.

'Very clear, thumping, unambiguous verdict for Vodafone'

Harish Salve, Senior Counsel, Vodafone

>Judgement likely to set guidelines for similar corporate deals
>Essential message is that if there is genuine foreign direct investment (FDI) which comes into India and is not a fly by night operator, transaction is genuine
> If Parliament wants, they will have to change the law
> This transaction is not taxable because there is no transfer and there was no obligation to withold tax
> Department is within itself to closely examine such transactions
> In case of bonafide corporate structure, the department cannot impose tax
> Court has emphasized that for imposing tax, clarity is must
> For a foreign buyer or seller, tax is not a problem if they know in advance before the transaction



Abhishek Singhvi, Counsel for Vodafone

>Proud of the robustness of our judicial system
>Very clear, thumping, unambiguous verdict for Vodafone

Salman Khurshid, Union Law Minister

>I have not read the judgment yet
>It’s a unanimous judgment of three judges
>I would analyze it and then we will be able to comment on this
>Even finance minister has not read the judgment
>I read the Bombay high court judgment, it’s reversing this one and it was also very long
>I just know that it has gone against the revenue authorities
>We need revenue for government's important programmes

Hemant Sahai, Managing Partner, HSA Advocates

>Judgment a strong positive for corporate India
>Expect deal to impact on multiple levels

B M Singh, Ex CBDT Chairman

>Tax exclusion great hit to tax department
>Need to look into fine print of judgment for details
>Not clear on how tax liability will function
>Judgment indicates flood of FDI
>Expect increase in cross border transaction
>Reasonable judgment on the whole


Ketan Dalal, Joint leader - Tax and Regulatory Services, PWC

>Great relief for foreign MNCs
>Judgment indicates positive signal towards FDI
>Judgment a positive signal for cross border M&A

Gopal Jain, Senior Lawyer, SC

>Judgment indicates clarity and stability for investors
>Judgment indicates victory of Indian legal system
>Judgment a clear path for cross border transaction