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Surveys of the Income Tax Department in the offices of the British Broadcasting Corporation ie BBC in Delhi and Mumbai were in discussion last week. The Income Tax Department spent three days examining papers and computer data at the BBC’s offices. After this, now the Central Board of Direct Taxes i.e. CBDT has disclosed this survey for the first time. However, the department has not named BBC in its report. Its place has been called a foreign media institute. An official statement by the CBDT on Friday claimed that the income and profit figures shown by media conglomerate BBC’s various entities operating in India are not in line with their operations in India.
Miscalculation of money sent abroad
Administrative body of Income Tax Department Central Board of Direct Taxes (CBDT) In its statement, without naming the media organisation, it said that foreign units of a leading international media company have not paid taxes on certain amounts sent abroad. However, the Income Tax officials clarified that the statement pertains to a survey conducted on the premises of the British Broadcasting Corporation (BBC) in India. BBC sources said they would respond appropriately to any formal direct communication from the tax department in this regard.
The survey ran for 60 hours
The Income Tax Department’s survey operation on the premises of BBC in Delhi and Mumbai lasted for about 60 hours. The operation, which started on February 14, ended on Thursday night. The CBDT’s statement alleged various tax-related irregularities against the London-headquartered media company, as well as adopting “delay tactics” during the survey. “The survey revealed that despite substantial consumption of content in various Indian languages (other than English), the income/profit shown by various units of the group is not commensurate with the scale of operations in India,” according to the statement.
Fraud in tax liability to the department
The CBDT said, “The department has collected several evidences relating to its operations which indicate that tax has not been paid on certain foreign remittances and this amount has not been recognized as income in India by the group’s foreign entities.” is shown.” The CBDT said that the services of “substitute staff” were used by the BBC in the Income Tax survey and for the same, the Indian unit reimbursed the concerned foreign body.
question on transfer pricing
According to the statement, “There is a provision to deduct tax from the employee’s remuneration on such remittances but this has not been done. Apart from this, many discrepancies in relation to transfer pricing (transactions between related parties) documents were also found in the survey.” have come to the fore.” According to the statement, “significant evidence” has come to the fore through the statements of the employees, digital evidence and documents in the survey by the Income Tax authorities which will be further examined.
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