The Finance Ministry is examining major acquisitions and mergers (M&A) in the sector and is likely to hit them with demand notices on capital gains tax.
According to Minister of State for Finance S S Palanimanickam, a few cases relating to cross border merger and acquisition deals have been identified for further examination by the revenue department. These deals are being examined for possible tax implications.
The cases identified- the deal between Vodafone International Holding BV and Hutchison Telecommunication for acquiring Hutchison Essar, Sanofi Pasteur Holding with Merieux Alliance and Groupe Industriel Marcel Dassault for acquiring Shantha Biotechnics ; transfer of stake in GE Capital International services/Genpact India and SKR BPO Services deal with Barclays, Mauritius, for acquiring Intelnet Global Services.
The Supreme Court has already asked the British telecom giant to deposit US$557.2 million against a demand of over US$2.45 billion.
