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The Supreme Court has dismissed a petition filed by the Income Tax Department against Reliance Communications (Rcom), quashing a tax liability of about Rs 4,800 crore (including interest). The I-T department had termed it as “unexplained cash credit”.
The country’s highest court had dismissed the Special Leave Petition on Monday. The I-T department had filed the petition on taxing of the proceeds of Foreign Currency Convertible Bonds (FCCBs), Rcom said in a statement.
A bench of Justice Kurian Joseph and Justice Rohinton Fali Nariman passed the order in relation to taxing of the FCCB proceeds, interest and derivatives income.
During Financial Year 2006-07, RCom had issued FCCBs totaling $1.5 billion (Rs 6,485 crore). The I-T department was of the view that the FCCB proceeds were ‘unexplained cash credits’ and had raised tax demands on them.
149 Unlimited
Separately, Rcom launched a ‘149 Unlimited’ calling Plan, which will work across any network, an incentive for customers to move to the Rcom network. The plan enables users to make unlimited voice calls, including STD calls, to any mobile phone at just Rs 149 per month.
“There are still hundreds of millions of older 2G handset-owners in India, and Rcom is positioning this plan to migrate these customers to its network, along with 300 MB of data usage, Rcom said in a separate statement.
This also comes at a time as customers move away from the traditional Revenue Per Minute tariff model to a service subscription model based on Average Revenue Per User (ARPU), it said, adding the new plan is available across 2G, 3G and 4G technology platforms.
“Our new pioneering yet simple Unlimited Plan has the potential to trigger a paradigm shift in the way Indians recharge their mobile phones, creating a significant shift in the telecom market — as it moves away from the ‘Unit Rate’ charging regime to a ‘Single Recharge and Unlimited Usage’ regime. This plan will see millions of Indians benefit, and help Rcom ramp up its customer base and engage with higher-value customers and greater ARPUs,” said Gurdeep Singh, Co-CEO, Rcom and CEO of Rcom’s Consumer Business.
And with Rcom’s high-speed add-on data plans, ‘149 Unlimited’ will also appeal to data-heavy 3G-4G customers, it added.
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