Vodafone-Idea investors have benefited from the central government’s pre-tax decision. On the last trading day, Friday, Vodafone-Idea stock ended with a gain of nearly 20 percent. At the end of the transaction, the company’s share price was Rs. 7.10, a gain of 19.53%. At the same time, the market capitalization also increased to Rs 20,402 crore.
Causes of stock rise: In fact, the government presented a bill in the Lok Sabha on Thursday and announced that it would withdraw all tax demands on companies from an earlier date. The government has said it will revoke the tax demand on foreign companies and return about Rs 8,100 crore collected from them.
Vodafone Contact: There has been a long standing dispute between UK company Vodafone and the Government of India over this tax. Last year, Vodafone won an international arbitration against the Government of India. Following this, the Government of India challenged the decision in a Singapore court. The company is in trouble because of the Telecommunication Department’s Adjusted Gross Revenue (AGR) balance, which is a matter of compensation for Vodafone. Because of this, the company’s investors also suffered losses.
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The RBI Governor made the right move: Reserve Bank Governor Shaktikanta Das has praised the government’s decision on the back of the tax due from an earlier date. He described the government’s stance on the crisis caused by the epidemic as a far-reaching and thoughtful step.
