Telecom player, Vodafone was served notice by the Income Tax (IT) department for non-payment of the taxes.

IT department has also served it a show-cause notice and asked as to why the company should not be taxed with Rs. 12,000 crore for its $11.1 billion deal with the Hong Kong-based Hutchison.

The deal had taken place in 2007 according to which Vodafone acquired all the assets of Essar in India though a JV with the company.

A finance ministry official said that Vodafone is going to be imposed with Rs. 12,000 crore tax.

The spokesperson of the company has confirmed the receipt of tax notice and said that it has disrupted the jurisdiction notice by claiming that it has 'no tax payable'. This is because the deal was done between two foreign entities and Indian government has nothing to receive out of it.

Meanwhile, the IT Dept has already filed a case with the Bombay High Court against Vodafone.

Vodafone acquired 67 per cent stake Hutchison Essar from Hutchison Telecommunications International.

Whatever the case may be, Vodafone is not having good times in India. First it could not reach the targets set by it and now the tax issues are creating trouble for the management.