Encouraged by the recent Supreme Court order in its favour, Vodafone Plc is taking on the income tax department, yet again. The British telecom major yesterday moved the dispute resolution panel, seeking relief from an order sent by the I-T department in December.The draft transfer pricing order asked Vodafone to add an additional income of around Rs 8,500 crore to its income from Indian operations. Transfer pricing is an accounting practice used by multinational companies to determine costs while transacting with different entities that belong to the same company. Transfer prices are monitored by tax authorities, as they are used to determine income, expenses and the tax.
Source: Business Standard
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