Income Tax department issues notice to Bharti-Airtel on overseas roaming operations
The Income Tax department has issued fresh notices to telecom giant Bharti Airtel in connection with taxation of overseas roaming charges for additional two financial years.
The department has issued the notices for financial years 2001-02 and 2006-07 to the company after recently issuing a Rs 1,067-crore tax demand notice for non-payment of TDS dues in the last four financial years in connection with its overseas operations.
Bharti Airtel, which has approached the Delhi High Court against this I-T order, has recently made an interim payment of Rs 236.9 crore in this regard.
An Airtel spokesperson said in a statement to PTI that "this pertains to a matter where the I-T department is trying to treat inter-connect charges being paid by domestic telecom operators to international operators, as fee for technical services and recover withholding tax on that basis.
"The matter is sub-judice and the demand on the company stands stayed. The pre-deposit amount has been paid in compliance of the court order granting stay."
According to sources in the I-T department, fresh notices were issued to the firm in order to obtain financial documents and revenue collection figures of overseas roaming operations during those financial years and a tax demand will be raised after scrutinising this data.
The Income Tax department, earlier this year, had asked the company to pay a total tax of Rs 1,067.24 crore under Section 201 (consequences of failure to deduct or pay taxes) along with Section 195 (any person responsible for paying to a non-resident) of the I-T Act.
The tax demands raised for the four financial years were- 2007-08 (Rs 202.07 crore), 2008-09 (Rs 329.913), 2009-10 (Rs 313.577 crore) and 2010-11 (Rs 221.681 crore) on payments made by the company to "non-resident mobile service providers".
The I-T department had held that such payments are in nature of fee for technical services and are subjected to TDS deductions as per section 195 of the I-T Act.
The department, in its notice, had also said that for payments of such taxes, the location of the company's property or place of conducting the operations is not "relevant".
Bharti Airtel offers a variety of telecom services both in India as well abroad.
The company claims to have a subscriber base of over 230 million across 19 countries. (Economic Times)
Category : Income Tax | Comments : 0 | Hits : 342
Get Free Daily Updates Via e-Mail on Income Tax, Service tax, Excise and Corporate law
- Income Tax Dept serves notices to salaried individuals for documentary proof to claim exemptions
- Bank Branch Audit 2021 - Update on allotment of Branches
- Bank Branch Audit 2020 Updates
- Bank Branch Audit 2021 Updates
- Bank Branch Audit 2020 - Update on Allotment of Branches
- Police Atrocities towards CA in Faridabad - Its Time to be Unite
- Bank Branch Statutory Audit Updates 2019
- Bank Branch Statutory Audit Updates
- Bank Branch Audit 2022 Updates
- Bank Branch Statutory Audit Updates
- NFRA Imposes Monetary penalty of Rs 1 Crore on M/s Dhiraj & Dheeraj
- ICAI notifies earlier announced CA exam dates despite pending legal challenge before SC
- NFRA debars Auditors, imposes Rs 50 lakh penalties for lapses in Brightcom, CMIL cases
- GST Important Update - Enhancement in the GST Portal
- NFRA Slaps Rs 5 lakh Penalty on Audit Firm for lapses in Vikas WSP Audit Case
- CBDT extends due date for filing Form 10A/10AB upto 30th June, 2024
- RBI comes out with FEMA regulations for direct listing on international exchange
- RBI directs payment firms to track high-value, fishy transactions during elections
- NCLT orders insolvency proceedings against Subhash Chandra
- Income Tax dept starts drive to dispose of appeals, 0.54 million at last count
- Payment of MCA fees –electronic mode-regarding
- Budget '11-12' Parliament Completes Approval Exercise
- Satyam restrained from operating its accounts
- ICICI a foreign firm, subject to FDI norms: Govt
- Maha expects Rs 15 crore entertainment tax revenue from IPL
- CAG blames PMO for not acting against Kalmadi
- No service tax on visa facilitators: CBEC
- Provision of 15-minutes reading and planning time allowance to the candidates of Chartered Accountants Examinations
- Companies Bill to be taken up in Monsoon Session
- File Service Tax Return in time as Maximum Penalty increased 10 times to Rs. 20000

Comments