The tax dispute between the Government and Vodafone took a new turn on Tuesday with the UK-headquartered telecom major coming up with a fresh proposal for early resolution.
Analjit Singh, Vodafone India Chairman, called on the Finance Minister P. Chidambaram, and is understood to have offered to pay $650 million (Rs 3,900 crore) towards the tax dues of the telecom major.
This is against the Government’s tax demand of $1.4 billion (Rs 8,400 crore). The total demand including interest is estimated at about Rs 11,200 crore.
Vodafone had sought more time to reply to the Revenue Department’s offer for a non-binding conciliation under the Indian Arbitration and Conciliation Act.
The telecom major was keen on arbitration under the United Nations Commission on International Trade Laws. However, India had proposed conciliation under the Indian Arbitration Act.
srivats.kr@thehindu.co.in