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India questions Senate action cutting off aid over tax dues
Washington, July 15: The US Senate has approved a bill cutting foreign aid to India for alleged non-payment of property tax to the city of New York for a building that houses its UN mission, setting off strong protests from Indian diplomats.
Washington, July 15: The US Senate has approved a bill cutting foreign aid to India for alleged non-payment of property tax to the city of New York for a building that houses its UN mission, setting off strong protests from Indian diplomats.
The Senate, at the instance of New York Democrat Charles Schumer, approved the bill yesterday to cut foreign aid to India, Philippines, Turkey and Mongolia by 110 per cent
of the US 106 million they collectively owe.
Questioning the action, Indian diplomats said that as far as India is concerned, there is a legal issue involved. India, whose dues have been estimated at 16.37 million dollar (about Rs 77 crore), has challenged the basis of the New York city authorities' claim, saying the building premises have not been put on any commercial use.
The city authorities have alleged that these countries have been renting out portions of their properties to staff members and commercial concerns.
Half of the Indian mission building is used as office and the rest occupied by staff with diplomatic immunity and hence, India contends, there is no liability to pay taxes. In the case of the Philippines, it is contended by the city that space has been leased to its national airline, a bank and restaurant. None of them has diplomatic immunity and hence, it is argued, Philippines owes taxes to the city.
The UN mission building is viewed as simply nontaxable because India derives no profit from it and the only people staying there are people with diplomatic immunity, diplomats said. It is learnt that the issue has already been taken up by the Indian mission to the UN.
Bureau Report
Questioning the action, Indian diplomats said that as far as India is concerned, there is a legal issue involved. India, whose dues have been estimated at 16.37 million dollar (about Rs 77 crore), has challenged the basis of the New York city authorities' claim, saying the building premises have not been put on any commercial use.
The city authorities have alleged that these countries have been renting out portions of their properties to staff members and commercial concerns.
Half of the Indian mission building is used as office and the rest occupied by staff with diplomatic immunity and hence, India contends, there is no liability to pay taxes. In the case of the Philippines, it is contended by the city that space has been leased to its national airline, a bank and restaurant. None of them has diplomatic immunity and hence, it is argued, Philippines owes taxes to the city.
The UN mission building is viewed as simply nontaxable because India derives no profit from it and the only people staying there are people with diplomatic immunity, diplomats said. It is learnt that the issue has already been taken up by the Indian mission to the UN.
Bureau Report