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BBC Tax Survey: `All Entities Operating in India Must Follow Laws`, EAM S Jaishankar Firmly Tells UK FM James Cleverly
UK Foreign Secretary James Cleverly raised the issue of the BBC`s tax obligations during a meeting with Indian External Affairs Minister S. Jaishankar in Delhi on Wednesday.
New Delhi: India has made it clear to the United Kingdom that compliance with Indian laws and regulations is mandatory for all entities operating in the country, including the British Broadcasting Corporation (BBC). This comes after UK Foreign Secretary James Cleverly raised the issue of the BBC's tax obligations during a meeting with Indian External Affairs Minister S. Jaishankar in Delhi on Wednesday. According to sources, during the meeting, Jaishankar "firmly" told Cleverly that "all entities operating in India must comply fully with relevant laws and regulations."
The Income Tax Department carried out Tax surveys at BBC offices in Delhi & Mumbai in February. According to the Finance Ministry statement, IT Department 'gathered crucial evidence' pertaining to the operation of the organization which "indicate 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." The Indian action also came up during discussion during UK Parliament.
According to the statement, several discrepancies and inconsistencies with regard to transfer pricing documentation were found during the survey. It also stated that the income and profits shown by various BBC group entities are not commensurate with the scale of their operations in India.
The survey was launched on February 14 at BBC offices in Delhi and Mumbai and it ended after about 60 hours on Thursday night.
Pertinent to mention, the IT survey came weeks after the BBC released a documentary on Prime Minister Narendra Modi - `India: The Modi Question," which caused controversy. The Centre had issued directions for blocking multiple YouTube videos and Twitter posts sharing links to the controversial BBC documentary on PM Modi.
The Supreme Court had on February 3 directed the central government to produce original records relating to its decision to block the BBC documentary.