By: http://www.moneycontrol.com
Category: Investment In India
In an exclusive interview to CNBC-TV18, Analjit Singh, chairman, Vodafone talks about the company's plan to stay put in India. He also says that as a practising businessman, the sudden change in rules will not auger well for foreign direct investment and the country at large. He mentions that Vodafone has only invested in the country and they haven't taken a single cent out of the country yet.
Below is the edited version of the transcription. Also watch the accompanying video.
Q: Is Vodafone planning to move out of India if it has to pay tax?
A: No, I don't think that is the question on hand, about Vodafone pulling out. The question is fair play. The question is not changing the rules of the games so substantially, particularly in light of Vodafone being the largest foreign direct investor in India.
Vodafone has invested USD 26 billion in India from the time they came in 2007 till now. They have contributed USD 6 billion to the exchequer. Vodafone has not taken a single penny out of the country. The question of Vodafone quitting is not even on the table.
The question is, for a company that came in under a set of rules, under a promise, the democracy that we are in. At his point, this is not the right message for a country.
It's grossly unfair not only for Vodafone India Limited, but for corporate India I think to have had a law for 50 years and not having found any un-ambiguity or fault with it for practically 44-45 years and then all of a sudden to find something terribly wrong with it is incorrect. As a practicing businessman in India, I have to say that this will not auger well for foreign direct investment and for the country at large.
Q: Is Vodafone looking at perhaps international arbitration?
A: I don't know about international arbitration. As the investee company is NV, a Dutch company they will look at legal options on the point of double taxation and avoidance treaty. I believe people are not aware that advantage of not paying capital gains has not been realised by Vodafone.
The capital gain accrued in the hand of Hutchinson. When Vodafone took advice, whether they were required to withhold tax in light of capital gain, every single tax advisor opined that it hasn't happened in 46 years, it won't happen now. So, Vodafone did not withhold tax under advice from eminent tax advisor in this country.
Everybody feels that Vodafone has gained this advantage or Vodafone in entering India has lucked out or cashed out or benefitted by whatever the amount is USD 2 billion, Vodafone has only invested, they haven't taken a single cent out of the country.
Source: http://www.moneycontrol.com/news/business/vodafone-largest-fdiindia-wont-pull-out-chairman_683648.html
Category: Investment In India
In an exclusive interview to CNBC-TV18, Analjit Singh, chairman, Vodafone talks about the company's plan to stay put in India. He also says that as a practising businessman, the sudden change in rules will not auger well for foreign direct investment and the country at large. He mentions that Vodafone has only invested in the country and they haven't taken a single cent out of the country yet.
Below is the edited version of the transcription. Also watch the accompanying video.
Q: Is Vodafone planning to move out of India if it has to pay tax?
A: No, I don't think that is the question on hand, about Vodafone pulling out. The question is fair play. The question is not changing the rules of the games so substantially, particularly in light of Vodafone being the largest foreign direct investor in India.
Vodafone has invested USD 26 billion in India from the time they came in 2007 till now. They have contributed USD 6 billion to the exchequer. Vodafone has not taken a single penny out of the country. The question of Vodafone quitting is not even on the table.
The question is, for a company that came in under a set of rules, under a promise, the democracy that we are in. At his point, this is not the right message for a country.
It's grossly unfair not only for Vodafone India Limited, but for corporate India I think to have had a law for 50 years and not having found any un-ambiguity or fault with it for practically 44-45 years and then all of a sudden to find something terribly wrong with it is incorrect. As a practicing businessman in India, I have to say that this will not auger well for foreign direct investment and for the country at large.
Q: Is Vodafone looking at perhaps international arbitration?
A: I don't know about international arbitration. As the investee company is NV, a Dutch company they will look at legal options on the point of double taxation and avoidance treaty. I believe people are not aware that advantage of not paying capital gains has not been realised by Vodafone.
The capital gain accrued in the hand of Hutchinson. When Vodafone took advice, whether they were required to withhold tax in light of capital gain, every single tax advisor opined that it hasn't happened in 46 years, it won't happen now. So, Vodafone did not withhold tax under advice from eminent tax advisor in this country.
Everybody feels that Vodafone has gained this advantage or Vodafone in entering India has lucked out or cashed out or benefitted by whatever the amount is USD 2 billion, Vodafone has only invested, they haven't taken a single cent out of the country.
Source: http://www.moneycontrol.com/news/business/vodafone-largest-fdiindia-wont-pull-out-chairman_683648.html
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