SC to pronounce judgment on Vodafone tax case
The Supreme Court will rule on a whopping Rs 11,000 crore tax bill slapped on British phone giant Vodafone over its purchase of a local operator. The tax battle is being closely scrutinized by foreign firms, which see it as setting a precedent for cross-border acquisitions in fast-growing India. Vodafone, the world's largest mobile operator by subscribers, maintains Indian law did not require it to deduct tax on the deal because it took place in the Cayman Islands and both buyer and seller were foreign. The SC's interim order on September 27, 2010 had refused to stay the high court verdict.