Ncell gets 15days to clear due capital gains tax

Ncell gets 15days to clear due capital gains tax

The Large Taxpayers Office provided a term to the individual telecom firm Ncell to release its leading capital gains tax dues in 15 days.

LTO’s requirement to Ncell to remove the taxes came on the same day that the tax office got an official letter from a foreign investment debate settlement court claiming it not to receive CGT collection method from Ncell.

Declaring an interim order last week, the International Centre for Settlement of Investment Disputes had ordered the government not to ‘take any steps’ to implement its resolution to collect Rs 22.4 billion in leading capital gains tax, along with interest and penalties, from the sale of Ncell by TeliaSonera Norway to Axiata UK.

The LTO officially accepted ICSID’s order. The taxmen at the LTO stated ICSID’s letter would be presented with the government, LTO, as opposed to ICSID’s directive, addressed Ncell to clear the leading CGT dues.

As per the verdict of the Supreme Court, the LTO had ordered Ncell to deposit Rs 22.44 billion outstanding CGT in 15 days on December 8.

As the telecom company did not pay the stated price within the specified time, the LTO today urged Ncell to invest Rs 22.6 billion tax dues, along with interest and late fees.

The letter sent states that the government will start action on Ncell based on the Income Tax Act if it loses to release its tax dues in the given deadline, Jhalak Ram Adhikari, chief tax administrator stated.
“If the company does not clear applicable CGT within the given timeframe this time, we will initiate action based on provisions mentioned from Section 104 to 109 of the Income Tax Act,” notified Adhikari.

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