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DoT calls on Vodafone to stump up USD223m

4 Jun 2013

The Department of Telecommunications (DoT) has issued a notice to Vodafone India demanding that the cellco pay INR12.63 billion (USD222.99 million) for under reporting revenue in 2008-2009 and 2010-2011. The Economic Times cites unnamed sources familiar with the matter that the DoT has sought INR7.15 billion from the cellco for 2008-2009 and a further INR5.48 billion for 2010-2011. The request reportedly follows the DoT’s discovery of procedural lapses and anomalies in Vodafone India’s reporting of revenues, foreign exchange gains, taxation and interest. It is unclear however where the new charges relate to the DoT’s February 2013 order that Vodafone, along with Bharti Airtel and Reliance Communications (RCOM), pay additional spectrum fees dating back to 2008, after adjusting the amount due to take into consideration non-telecoms earnings. That levy had been facilitated by a Supreme Court ruling in October 2011 that allowed the regulator to apply tax to non-telecoms transactions.

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