Law of Taxation

Name of the case: Vodafone International Holding V. Union of India Provisions involved: Section 9(1)(i) of Income tax Act, 1955 Section 163 of Income tax Act, 1955 Section 195 of Income tax Act,1955 Facts of the case: In February 2007, the Dutch company Vodafone International Holding (VIH) acquired a 100% stake in CGP Investments (Holding) Ltd ('CGP'), a Cayman Islands company, worth USD 11 billion from Hutchison Telecommunications International Limited. CGP manages 67% of the Indian company Hutchison Essar Limited ("HEL") through various legal organizations. With this acquisition, Vodafone took control of CGP and its subsidiaries, including Hutchison Essar Limited. HEL is a joint venture between the Hutchison meeting and the Essar meeting. As of November 1994, the ...

What is a professional tax? Ad Valorem is the tax levied for carrying on a profession, as the law covers occupation or trade within the meaning of profession tax. Andhra Pradesh, Assam, Chhattisgarh, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Meghalaya, Orissa, Tamil Nadu, Tripura, and West Bengal are the states in India imposing a professional tax. Every start-up shall apply for professional tax registration to the appropriate authority. The taxing power is divided between the State and the Centre by the Constitution of India. Item number 60 of List II (the “State” List) brings “taxes on professions, trades, callings, and employments” under the authority of the state and municipal bodies. Thus the Profession Tax paid is to the State Government’s consolidated fund. The...