The British mobile giant Vodafone has been ordered to pay 2.6 billion dollars to the tax department of India by an Indian court. The tax bill is related to the deal of 11.1 billion, the company had made to buy majority stake in the Indian assets of Hutchison Telecommunications before three years.

Hutchison was one of the largest mobile operators of India. Meanwhile the British firm has urged the court to overturn the ruling of the tax department that it was liable to the tax on the purchase of the company.

Vodafone has said that it was planning to appeal against the decision which was ruled by the tax department over the deal of two foreign companies.

But the court has said that the Indian Tax Authorities had the power of making decision over the deal as the deal involved transfer of Indian assets with it and that accrue revenue in India.

Vodafone is expecting a large sum of money from selling of its 3.2% stake in China Mobile which the company was forced to sell because of the business problems in China. But the problems for Vodafone are only rising day by day.