The department on February 4 sent a notice to Vodafone International Holdings BV seeking Rs 14,200 crore in taxes, which it says are due from its USD 11 billion acquisition of Hutchison Whampoa's India telecom business in 2007. The matter is under international arbitration.
"We can confirm that we have received a tax reminder from the Tax Department that also references asset seizures in the event of non-payment," a Vodafone spokesperson said.
The tax demand relates to a dispute that is currently the subject of international arbitration, he said. The British telecom major has disputed the tax demand over its acquisition of 67 per cent stake in Hutchison, now called Vodafone India, arguing that no tax was due as the transaction was conducted offshore.
But the tax department's contention is capital gains were made on assets in India. "The Indian government stated in 2014 that existing tax disputes, including ours, would be resolved through the existing judicial process," Vodafone said in the statement.


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