The Supreme Court has asked for 1 percent or Rs. 25 crore (approximately $6 million), to handle the Vodafone tax battle relating to a deposit of Rs. 2,500 crore ($523 million) by Vodafone International Holdings.

The deposit was made in consideration before the Court heard its appeal against a Bombay High Court order validating nearly $2.6 billion (Rs. 12,000 crore) capital gains tax on the $11.6 billion (Rs. 52,200 crore) acquisition of Hutch.

The SC said the Government could withdraw Rs. 2,500 crore ($523 million), but if Vodafone won its appeal, it would have to return the money plus interest. But when the Government went to withdraw the money, it was asked to pay a commission of 1 percent or Rs. 25 crore (approximately $6 million).

The DGIT (Directorate General of International Tax) came to the Supreme Court with an application saying the rare invocation of Entry 26 of Part III of Third Schedule of the Supreme Court Rules, 1966 to demand 1 percent commission on the deposited amount could mean the Government will be allowed to withdraw an amount of Rs. 2,475 crore, reports the Times of India.

The question lays with, will the Rs. 25 crore (approximately $6 million) now go to the consolidated fund? or will the Supreme Court get to keep it, so as to spend it on infrastructure and other requirements.

According to recent media reports the Government has now asked the Supreme Court to waive its 1 percent commission for letting it withdraw Rs. 2,500 crore ($523 million), which has been deposited in the Court by Vodafone and instead, it has requested the Court to direct Vodafone to deposit Rs. 25 crore (approximately $6 million) extra to meet the Government's liability to pay the commission.

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