4. INTRODUCTION IN THE MONTH OF MAY 2007 GLOBAL MOBILE GIANT VODAFONE VENTURED INTO THE INDIAN TELECOM INDUSTRY BY BUYING OUT 67% STAKE IN HUTCHISON ESSAR.THE DEAL WAS WORTH $11.1 BILLION AND WAS THE BIGGESTFDI IN INDIAN TELECOM INDUSTRY EVER. IN THE MONTH OF SEPTEMBER THE INCOME TAX DEPARTMENT SENT A SHOW CAUSE NOTICE TO VODAFONE ESSAR FORMERLY HUTCHISON ESSAR ASKING THEM TO PAY $2 BILLION AS CAPITAL GAIN TAX.
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6. AT 31 MARCH 2008 VODAFONE HAD 260 MILLION PROPORTIONATE CUSTOMERS IN 25 MARKETS ACROSS 5 CONTINENTS. ON THIS MEASURE IT IS THE SECOND LARGEST MOBILE TELECOM GROUP IN THE WORLD BEHIND CHINA MOBILE. VODAFONE ARE THE SPONSERS OF ENGLISH CRICKET TEAM , ROMANIA NATIONAL FOOTBALL TEAM. CONTD…..
7. VODAFONE ESSAR VODAFONE ESSAR , PREVIOUSELY HUTCHISON ESSAR IS A CELLULAR OPERATOR IN INDIA THAT COVERS 16 TELECOM CIRCLES IN INDIA. IT OFFERS BOTH PREPAID AND POST PAID GSM CELLULAR PHONE COVERAGE .DESPTE THE OFFCIAL NAME BEING VODAFONE ESSAR, ITS PRODUCTS ARE SIMPLY BRANDED VODAFONE. VODAFONE ESSAR IS OWNED BY VODAFONE 52%,ESSAR GROUP 33% AND OTHER INDIAN NATIONALS 15%.THE TRANSACTION TAKEN PLACE ON 8th MAY 2007.AND VODAFONE ESSAR IS THE FOURTH LARGEST WIRELESS OPERATOR IN INDIA.
13. VODAFONE TAKEOVER Vodafone(Briton) A Foreign company Takes over HTIL( Whampoa group of Li-Ka Shing. Hong Kong A foreign company Hutchison Essor Indian Company Essor group Asim Ghosh-12% A.Singh and other companies (Minority) 67%
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17. INCOME FROM CAPITAL GAIN TRANSFER OF CAPITAL ASSETS RESULTS IN CAPITAL GAINS. A CAPITAL ASSET IS DEFINED UNDER SECTION 2(14) OF I.T ACT 1961,AS PROPERTY OF ANY KIND BY AN ASSESSE SUCH AS REAL ESTATE,EQUITY SHARES,JWELLERY,PAINTING, ART etc.BUT NOT INCLUDED SOME ITEMS LIKE STOCK IN TRADE FOR BUSINESS AND PERSONAL EFFECTS.
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19. Conclusion India is the fourth largest telecom market in Asia after China, Japan and South Korea. The Indian telecom network is the eighth largest in the world and the second largest among emerging economies. At current levels, telecom intensiveness of Indian economy measured as the ratio of telecom revenues to GDP is 2.1 percent.As the case is pending in the HIGH COURT OF MUMBAI, we cannot draw a clear conclusion to this case