The government on Friday said income shown by the British Broadcasting Corporation (BBC) group entities is not commensurate with the scale of operations in India. The statement by the Central Board of Direct Taxes (CBDT) came a day after authorities held a three-day survey against the British media organisation at its Mumbai and Delhi offices.
Without naming the media organisation, it stated that the survey action was undertaken under section 133A of the Income-tax Act, 1961 at the business premises of the group entities.
“The survey revealed that despite substantial consumption of content in various Indian languages (apart from English), the income/profits shown by various group entities is not commensurate with the scale of operations in India,” the statement read.
The CBDT stated several evidences pertaining to the operation of the organisation have indicated that tax has not been paid on certain remittances which have not been disclosed as income in India by the foreign entities of the group.
Discrepancies and inconsistencies with regard to transfer pricing documentation were found during the survey. “Such discrepancies relate to level of relevant Function, Asset and Risk (FAR) analysis, incorrect use of comparables which are applicable to determine the correct Arms Length Price (ALP) and inadequate revenue apportionment, among others,” it stated.
It revealed that Income Tax department unearthed crucial evidences by way of statement of employees, digital proof and documents which will be examined in due course.
The department clarified that statements were taken of only those employees whose role was “crucial including those connected to, primarily, finance, content development and other production related functions.”
It further noted that “dilatory tactics were employed including in the context of producing documents/agreements.” Despite such stance of the group, the survey operation was conducted in a manner so as to facilitate continued regular media/channel activity, it added.
The statement came after the Income Tax department launched a survey at BBC offices in Delhi and Mumbai on February 14. The operation ended after about 60 hours on Thursday night.
The ruling BJP had accused the BBC of “venomous reporting”, while the Opposition questioned the timing of the action weeks after the British broadcaster aired a two-part documentary — “India: The Modi Question” — on Prime Minister Narendra Modi and the 2002 Gujarat riots.
Supreme Court had last week expunged a plea that sought a complete ban on the BBC in India in the wake of the controversial documentary. The apex court termed the petition “entirely misconceived” and “absolutely meritless”.
Read all the Latest India News here
Comments
0 comment