BPL stake sale in Loop Telecom under tax scanner

The government today said that stake sale by two BPL group companies in Loop Telecom has been selected for tax scrutiny.

However, since assessment in the case is pending, tax liability is yet to be calculated,  Minister of State for Finance S S Palanimanickam said in a written reply to the Rajya Sabha.

"The case has been selected for scrutiny and the assessment in this case is pending. Consequently, the tax liability cannot be calculated at this stage," he said.

The minister said that the Bangalore-based BPL had sold companies' equity to new operators.

During the assessment year 2008-09, BPL Mobile Communications Ltd and BPL Communications Ltd had a share holding of 51 per cent and 49 per cent respectively, in Loop Telecom Pvt Ltd, Palanimanickam said.

"Their share holding pattern changed during the assessment year 2009-10 and the new holders are -- M/s Capital Global (23.96 per cent), M/s Loop Mobile Holdings India Ltd (21.09 per cent) and M/s Loop Mobile (India) Ltd (51.95 per cent)," he added.

On the issue of proposed stake sale by Cairn Energy in Cairn India to Vedanta Resources, the minister said that although capital gains tax would arise, the exact quantum cannot be assessed since the share sale is awaiting the government approval.

On sale of 2.29 per cent stake in Cairn India by Cairn Holding to Petronas, Palanimanickam said the assessee has paid Rs 81.9 crore as tax.

"The issue of rate of tax applicable on the shown transaction is being adjusted before the Authority for Advance Ruling," he added.