Telenor liable to pay taxes: CBDT tells JPC probing 2G scam
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Telenor liable to pay taxes: CBDT tells JPC probing 2G scam

Last Updated: Thursday, September 08, 2011, 00:22
 
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Telenor liable to pay taxes: CBDT tells JPC probing 2G scam
New Delhi: Telenor of Norway has confirmed that it has permanent establishments in India which makes it liable to pay taxes from revenue sourced from the country, the Central Board of Direct Taxes (CBDT) told the Joint Parliamentary Committee (JPC) looking into the 2G scam.

In a presentation before the JPC, the CBDT said Unitech Wireless had made payments to Telenor and its associate companies against purchase of services and equipment.

"Investigations reveal that these foreign companies have substantial physical and economic presence in India creating their permanent establishments in India," the CBDT said.

These foreign companies are liable to tax in India in respect of revenue sourced from the company, it said.

On issue of statutory notices, the companies have confirmed that they have permanent establishments in the country and four such firms have furnished returns of income for 2010-11 and admitted total income of about Rs 25 crore.

"Their (tax) liability for earlier years is under examination," the CBDT said.

The tax authorities are also examining instances of issuance of shares at a huge premium mainly to foreign companies. However, these shares were transferred at par or at a very low premium to group companies, the CBDT said.

The CBDT is also examining the genuineness of remittances made to foreign investors for purchase of goods/services as well as tax implications in relation to witholding tax and taxability in India.

"The reasonableness of the amounts paid to the foreign companies has to be examined in the case of these payer companies from the point of view of Transfer Pricing," the CBDT said.

PTI


First Published: Thursday, September 08, 2011, 00:22


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