It has been revealed according to a recent report that Vodafone, the telecom giant is to pay tax for the stakes they are going to buy from Essar. The firm has declared that it shall buy stakes from Indian Vodafone Essar and pay for the stakes as well as the tax. The tax rate for the purpose is thought to be about 21%.

It was revealed by Vodafone on March 31 that they shall pay a sum of $5 billion for buying Essar India stakes and that it is a part of the India joint venture. It was further revealed that they are going to acquire about 225 stakes of the firm. Essar has further offered them a buy of 11% of their shares.

Vodafone is one of the largest mobile phone networks and there are a lot of hopes riding on what they say and do.

“We see the CFO’s comments on Verizon Wireless dividend as significant progress”, Royal Bank of Scotland analyst Lawrence Sugarman said today. “Halford’s comments mark the first time Vodafone has gone on the record as to what quantum of dividend it could expect”, she added further. Only time will tell what this new alliance brings for the firm and the customers.