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SC decides in favor of Ncell for the CGT amount
Supreme Court decides in favor of Ncell in the case filed by the telco to challenge the tax amount asked by Large Taxpayers Office (LTO). So, with the decision, Ncell need not pay the huge amount of Capital gain taxes occurred during Ncell buyout by Axiata.
After the full verdict of Ncell CGT case, LTO calculated Rs 62.63 billion amount and asked to pay Ncell the remaining Rs 39.06 billion within a week of that time. Challenging the tax amount, Ncell filed a petition to the Apex court for the wrong calculation as they say they already paid Rs 23.57 billion as CGT and late fee.
Calculations
As per rule, 25 % of the capital gain while selling a stake should be paid to the Government. Telia had gained over Rs 143 billion (1.43 Kharba) by selling the Ncell to Axiata. So the CGT amount becomes Rs 35.91 billion which is 25 percent of total gain. With more late fees, interest and penalty, LTO calculated the amount of Rs 62.63 billion.
As Ncell says they have already paid CGT and late fees, they claim to pay the remaining 10 Percent amount of the total gains. In the petition, they also demanded that the remaining CGT amount be only Rs 14.5 billion to LTO.
After the petition, the Supreme Court put a hold to the tax collection process with a stay order, until the final decision which arrives now. A full bench under the justices Tej Bahadur KC, Purushottam Bhandari, Dambar Bahadur Shahi, Suhmalata Mathema, and Manoj Kumar Sharma took a decision to scrap the LTO CGT amount.
Tell us what do you think of Supreme Court Decision in favor of Ncell for the CGT amount.
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