Conciliation talks between Vodafone India and the government over tax liabilities have fallen through, The Economic Times writes. India's income tax department is now expected to renew its INR 112 billion tax demand on the operator's 2007 acquisition of Hutchison Whampoa's stake in Hutchison Essar. The tax demand had been kept in abeyance as the two parties were in talks to settle the matter. Vodafone had wanted to widen the scope of the negotiations to include the INR 85 billion transfer pricing dispute as well while the government did not want this included as the matter is before the Bombay High Court, according to the paper. The court directed Vodafone and the income tax department to approach the appellate tribunal.
