Feb 7 (Reuters) - Vodafone Group Plc said onThursday it has received a transfer pricing order in India overthe issue of shares by its unit Vodafone India Services PrivateLtd. (VISPL).
The order is linked to a transfer pricing dispute in thefiscal year ended March 2008, which Vodafone has challengedbefore the Dispute Resolution Panel of the Indian income taxdepartment, it said in a statement.
"As this latest order relates to a share subscription, andshare subscriptions are not covered by transfer pricing ruleseither in India or internationally, we will be challenging theorder as it has no basis in law," it said.
Transfer pricing is the value at which companies tradeproducts, services or assets including shares between units,mostly the parent company, in different countries.
Vodafone, the largest corporate investor in India, hasrepeatedly clashed with Indian authorities over taxes since itbought Hutchison Whampoa's local mobile business in2007.
Vodafone (VOD)
