Idea Cellular and unit served 39 billion rupees tax demand

MUMBAI Sat Apr 6, 2013 8:15pm IST

A shopkeeper speaks on a mobile phone at a vegetable wholesale market in Mumbai June 8, 2010. REUTERS/Rupak De Chowdhuri/Files

A shopkeeper speaks on a mobile phone at a vegetable wholesale market in Mumbai June 8, 2010.

Credit: Reuters/Rupak De Chowdhuri/Files

Related Topics

Stocks

   

MUMBAI (Reuters) - Idea Cellular Ltd (IDEA.NS), India's third-largest mobile carrier by revenue, and one of its subsidiaries have been issued with tax demands totalling 39 billion rupees by authorities, media reported on Saturday.

Idea said on Friday that it had received the demands, which relate to a restructuring exercise approved by courts more than three years ago, but did not disclose the amount.

The transfer of assets between Idea and its unit Aditya Birla Telecom were subject to capital gains tax according to tax officials, the Economic Times reported, citing an unidentified person close to the development.

The company, part of the $40 billion Aditya Birla Group conglomerate, said on Friday it believed the demands were "unjustified and based on erroneous interpretation of current tax laws".

Idea is evaluating options including challenging the tax demand, the company added.

(Reporting by Henry Foy in MUMBAI; Editing by Robert Birsel)

FILED UNDER:

Economic Pulse

REUTERS SHOWCASE

Nifty Above 8,600

Nifty Above 8,600

Nifty hits record high above 8,600; state-run lenders gain  Full Article 

Indian in Iraq

Indian in Iraq

India says no contact with 39 men held by Islamic State in Iraq.  Full Article 

Sahara Issue

Sahara Issue

Sahara looks to raise $650 million loan to fund bail.  Full Article 

Bhopal Tragedy

Bhopal Tragedy

Bhopal's toxic legacy lives on, 30 years after industrial disaster.  Full Article 

Essar Group

Essar Group

Exclusive - Essar's planned oil-for-steel deal tests Iran sanctions  Full Article 

Islamic Fund

Islamic Fund

India gets new Islamic equity fund but debt market still off-limits  Full Article 

Fiscal Deficit

Fiscal Deficit

April-October fiscal deficit nears 90 pct of full-year target  Full Article 

Oil Prices

Oil Prices

Oil hits new four-year low post OPEC as glut looms  Full Article 

Gold Imports

Gold Imports

India eases gold import rule in surprise move.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage