The grave urge relates to the mobile phone company's 2007 buy of the Indian write properties of Hong Kong firm Hutchison Whampoa.
Vodafone will allure against the taxation at the Indian paramount justice on Monday.
The firm says the $11bn contract was free from taxation because it took place between two offshore entities.
But the Indian taxation subdepartment right away says that Vodafone must pay the funds gains tax, and has handed the company its initial grave taxation demand.
"Vodafone strongly disagrees with the taxation calculation," the mobile user mentioned in a statement.
"The taxation control is attempting to appreciate Indian law as it has never been interpreted is to past 50 years, and this understand moreover goes against internationally recognized taxation norms."
Vodafone is a of the greatest mobile operators in India, with 116 million customers, by trait of a partnership with local company Essar group.
On the same day that the UK company received the taxation demand, its Indian J.V. - "Vodafone Essar" - voiced skeleton to launch 3G services in the new year.
The Indian auxiliary represents a poignant investment on Vodafone's part, inclusive a $2.6bn remuneration for its 3G licence.
The auxiliary skeleton a serve $500m of 3G network investment.
"We must be obtain more faith that law will not advance back and punch us to be able to approve our investment," mentioned Vodafone Group arch executive, Vittorio Colao, vocalization to India's Economic Times journal .
"I have obviously invested more in India because we do think in the country, but of march right away we moreover need a certain result from the taxation box and steady regulatory mood to continue."
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