Will issue fresh tax demand to Vodafone within 4 wks: I-T Dept

The Income Tax Department today said that it will issue a demand for over Rs 12,000 crore to Vodafone within four weeks, following a Supreme Court verdict to that effect.

"We will be raising tax demand on Vodafone within four weeks," Central Board of Direct Taxes (CBDT) Chairman S S N Moorthy told reporters here.

When asked what will be the amount, he said it will be almost over Rs 12,000 crore, including interest on Vodafone's tax liability.

He said a few similar cases are also under the I-T Department's scanner, but refused to name them.

He said raising the demand will not impact foreign investment in India.

"Apprehensions have been expressed in different quarters regarding the impact of such action of the Income Tax Department on foreign investment in India. The ruling, coupled with earlier rulings of the Bombay High Court, proved that Income Tax authorities in India have acted lawfully.

"This, together with the fact that India has received the highest ever foreign direct investment in the current fiscal, belies that apprehension," he said.

The Supreme Court today refused to offer any immediate relief to Vodafone, which had challenged the Bombay High Court order allowing the government to tax the company's $11 billion deal with Hutch.