The Bombay High Court has dismissed a petition filed by Vodafone International Holdings against the tax department, saying the transaction is chargeable to income tax and the department has the jurisdiction over cross-border mergers since the assets lies in India.

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Vodafone International Holdings B.V. Versus Union of India & others [2010 -TMI - 77365 - HIGH COURT OF BOMBAY]

 

Cross-border taxation: assets located in India subject cross-border mergers to Indian income-tax jurisdiction and tax liability. Cross-border transactions involving assets located in India are chargeable to Indian income tax, and Indian tax authorities have jurisdiction over such transactions when the relevant assets are situated within India; asset location in cross-border mergers determines taxable nexus and enables Indian tax assessment and collection.