Vodafone has offered to pay Rs 8,000 crore to settle its tax dispute with the Indian Government if the latter considers waiving penalty and interest amount.

“It is an option. I don’t know if it is viable,” Vodafone non-executive Chairman Analjit Singh said when asked whether it is a viable option for the telecom giant to pay Rs 8,000 crore tax, if penalty and interest are waived.

After a meeting with officials of the tax department here on Thursday, Singh told reporters, “We have made our public position very clear that Vodafone is completely ready to discuss the matter. Vodafone is not a company... (that is) confrontationist (or) controversial. This is not Vodafone’s business, its business is telecom.”

The Income Tax Department had raised a Rs 11,218-crore tax demand (including Rs 7,900-crore of tax and the remaining interest) from Vodafone for its acquisition of Hutchison stake in Hutchison Essar in 2007 through a deal in Cayman islands.

But the Supreme Court struck down the tax claim. Following the judgment, the Government in the Finance Bill, 2012, proposed amendments in the Income Tax Act, 1961, with retrospective effect that would bring overseas mergers and acquisitions involving Indian assets into the tax net.

Earlier this week, Vodafone Chief Financial Officer Andy Halford had said in London that the company might make a provision to cover the legal risks arising out of the tax dispute with the Indian Government.

> Shishir.Sinha@thehindu.co.in

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