Report: Idea Cellular receives notice to pay Rs 3,900 crore Income Tax
By insightVAS - Tue Apr 09, 3:49 pm
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The Income Tax department has issued a notice to Idea Cellular and also to its mother company Aditya Birla Telecom to pay an amount of Rs 3,900 core, over transfer of assets and licences between the two companies in 2009.
“Idea Cellular said that it has received tax demands over a restructuring exercise approved by courts, but did not disclosed the amount or details of the case,” according to news report. Media reports suggest that the I-T department is treating the transfer of licence, assets and liabilities from Aditya Birla Telecom Ltd to Idea Cellular as a slump sale, which is subject to capital gains tax.
Idea Cellular has been issued a tax demand order of Rs 1,500 crore on business income arising out of the transfer of telecom licences and other assets from Aditya Birla Telecom as part of the demerger, while ABTL, which is a subsidiary of Idea Cellular, has been served with a tax demand of Rs2,400 crore. The development is negative for Idea Cellular. Meanwhile, the DoT has asked the Indian arm of Vodafone and Idea Cellular to stop offering 3G services outside their licensed zones within three days, and slapped fines of Rs 550crore and Rs 300crore, respectively, on these companies.
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