
Supreme Court to hear plea on Sanofi’s tax liability in Shantha Biotechnics acquisition
2 min read . Updated: 05 Sep 2013, 12:56 AM ISTThe AP high court had in February ruled against the I-T dept and held Sanofi was not liable to pay tax in India
The AP high court had in February ruled against the I-T dept and held Sanofi was not liable to pay tax in India
New Delhi: The Supreme Court is set to hear a petition challenging a Andhra Pradesh high court ruling that French drug maker Sanofi SA was not liable to pay tax in India for its acquisition of Shantha Biotechnics Ltd. Its decision will likely have a bearing on the taxability of cross border transactions.
The apex court on Wednesday issued notice to the parties in the matter.
The Union government, which approached the Supreme Court through a special leave petition, is also seeking a review of the principles used in judgements in the Vodafone and the Azadi Bachao Andolan cases.
The Supreme Court had ruled last year that the income tax department had no jurisdiction over a $11.08 billion deal between Vodafone Group Plc. and Hutchison Telecoms that saw the UK-based company entering India.
It also introduced a validation clause that could override any court judgement.
Sunil Jain, tax partner at law firm J. Sagar Associates, said the Supreme Court’s judgement in the present case will have repercussions for the government with respect to a number of appeals that it is contesting in various courts.
A query addressed to Sanofi’s legal team in Paris did not elicit any reply.