Vodafone Idea presses for ₹7,000 cr tax refund; I-T dept hesitant in view of fresh liability

NEW DELHI : Vodafone Idea, India’s third-largest telecom service provider, is seeking about ₹7,000 crore in tax refunds for past years even as it faces fresh statutory dues liability – running into thousands of crore – that has put the income tax department in a bind, sources privy to the development said.

The tax department has in past adjusted refunds against a company’s other liabilities towards the government. It had famously adjusted ₹1,500 crore in tax refunds due to Cairn Energy plc of UK to part settle a retrospective tax demand of ₹10,247 crore even though the matter was under arbitration.

Sources said Vodafone has to receive an aggregate of about ₹1,000 crore from Mumbai unit of income tax department and another ₹6,000 crore from its Delhi office for multiple assessment years dating back to 2004-05.