On last week, the Bangalore bench of the Income Tax Appellate Tribunal (ITAT) granted a conditional stay to the telecom giants, Vodafone and asked them to pay an amount of 15 cores as a pre-requirement for the stay.
Before the Bangalore Tribunal, a total demand of Rs.47,05,12,978/- was pending. The issue was in connection with the nature of payment of interconnect charges made by the assessee to foreign carriers for the provision of carriage services outside India. Out of this, 15 crores was paid by the Company.
In view of the guidelines issued by the Apex Court and the Karnataka High Court, the bench stayed the demand subject to payment of Rs.5,00,00,000/- (Rupees Five Crores only) on or before 31st January, 2018 (31.01.2018) and to retain a balance of another 20% of the total demand in the bank account maintained by the assessee (the said balance is rounded off to Rs.10 crores), pending the disposal of the appeal by the Tribunal.
“On payment of Rs.5 crores, the total paid amount against the outstanding demand comes to 42.5% of the disputed demand, as per the appeal effect order dated 12.12.2017 and about 57.7% of the disputed amount of Rs.34.6 crores as per the rectification petition filed u/s. 154 dated 04.01.2018, if allowed. Accordingly, we direct the revenue not to enforce recovery of the demand subject to the payment of Rs.5 crores by the assessee on or before 31.01.2018 and retaining a balance of another Rs.10 crores in its bank account maintained by the assessee,” the bench said.
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