The order is linked to a transfer pricing dispute in the fiscal year ended March 2008, which Vodafone has challenged before the Dispute Resolution Panel of the Indian income tax department, it said in a statement.
"As this latest order relates to a share subscription, and share subscriptions are not covered by transfer pricing rules either in India or internationally, we will be challenging the order as it has no basis in law," it said.
Transfer pricing is the value at which companies trade products, services or assets including shares between units, mostly the parent company, in different countries.
Vodafone India's revenue grow 10% to 1.1bn pound in Oct-Dec
Vodafone, the largest corporate investor in India, has repeatedly clashed with Indian authorities over taxes since it bought Hutchison Whampoa's local mobile business in 2007.
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