Over 40 lakh big spenders under tax scanner

The Income Tax department is keeping a close watch over 40.72 lakh high-value spenders as it plans to check potential evasion instances before the closing of the financial year on March 31.

According to data, the department has information on 40,72,829 persons who had made cash deposits amounting to Rs 10 lakh or more in their saving bank accounts in the current fiscal.

“With technical solutions at the department’s disposal, there is a lot of information that is readily available to the authorities.

“We just want to send the across the message that nothing in clandestine and the department would get to know every transaction especially high value ones,” a senior I-T department official said.

Amongst other information that the department possesses is that 40,40,396 people who purchased mutual fund units of Rs 2 lakh or more, bonds or debentures of Rs 5 lakh or more, shares issued by companies of Rs 1 lakh or more and bonds issued by RBI of Rs 5 lakh and above.

The tax department’s official data prepared recently also states that 15,55,220 persons purchased or sold immovable property worth Rs 30 lakh or more; 20,61,443 persons made payments of Rs 2 lakh or more in a year against their credit card bills; people who received interest income of Rs 50,000 and above from banks and people who purchased bullion or jewellery of Rs 5 lakh or more.

The I-T department, sources said, has also send notices for non-filing of taxes to close to 12 lakh people and entities even as more such notices would be issued.
With the enhancement of technology, a lot of electronic data is now available to tax sleuths including that from the Financial Intelligence Unit, which has a specific task of looking for suspicious and high-value money transfers.

The I-T department, by releasing such data, intends to bring all such transactions into the tax net before the closing of FY14 on March 31 and garner as much revenue as possible.
Courtesy:
Press Trust of India | New Delhi | February 17, 2014 2:38 am
http://indianexpress.com/article/business/business-others/over-40-lakh-big-spenders-under-tax-scanner/

I-T department launches probe against 600 cash hoarders

NEW DELHI: The income tax department has begun prosecution proceedings against some of the 600 entities of Indian origin who have allegedly laundered money through bogus investments in tax havens either in their name or through their front companies.

Recently, the member (investigation) of Central Board of Direct Taxes, who has been reporting to the finance minister on this issue, held a video conference with income tax directors general and chief commissioners and asked them to expedite their probe against all such individuals and corporate entities.

This time, the finance ministry has roped in Enforcement Directorate, Financial Intelligence Unit and Directorate of Revenue Intelligence besides the I-T department to investigate the list of 600 who have allegedly stashed funds in tax havens.

The finance ministry through the FIU has sought help from the US, UK and Australia on these entities and has been assured of some inputs from Australia. The government is also banking on receiving information from some of these countries by invoking the Double Taxation Avoidance Agreements and tax information exchange agreements which India has signed with many of the tax havens.

These 600 names, whose investments have been allegedly tracked in tax havens, are in addition to the 700 that France had shared with the government in 2011 about Indians having deposits in the Geneva branch of HSBC.

Investigation in the HSBC deposits across Mumbai, Delhi, Chennai and Kolkata among other cities had revealed that the ill-gotten cash belonged to top industrialists, some politicians and other entities, some working as fronts for people yet to be identified. The I-T department had recovered tax from many of these high-profile individuals and let them off without prosecution.

Sources said the ED has begun investigation of foreign exchange violations, and possible money laundering against these 600 entities. The database of 600 was first brought out by the International Consortium of Investigative Journalists (ICIJ) in the summer of 2013.

According to sources, the ED has written to the CBDT for details it has obtained from various foreign authorities on the Indians on the ICIJ list. The CBDT investigation has found that some of the addresses on the list are wrong, and in some cases, the individuals are NRIs who can legally carry out financial transactions in tax havens.

The ED is primarily looking at violations of Foreign Exchange Management Act, but if any criminality is unearthed, the agency could probe the violation under Prevention of Money Laundering Act.

The ICIJ database contains names of a few famous industrial families, some politicians, and several others. These people primarily used the services of Singapore-based Portcullis TrustNet and British Virgin Islands-based Commonwealth Trust Limited for opening offshore financial entities.

Among those who figure in the database are two Members of Parliament — Lok Sabha MP Vivekanand Gaddam and Rajya Sabha member Vijay Mallya. Also on it are industrialists such as Ravikant Ruia, Samir Modi, Chetan Burman, Abhay Kumar Oswal, Rahul Mammen Mappillai, Teja Raju, Saurabh Mittal, Vinod Doshi etc.

Former IAS officer Anil Lakhina, wife of a former Delhi power secretary R K Verma also figure on the list. The name of Gautam Khaitan, whose name has cropped up in the VVIP helicopter scandal, also figures among those with such accounts.

The database, which contains transactions carried out several years ago as well as recent ones, has 170 addresses from Mumbai, 113 with Delhi addresses, 44 with Kolkata addresses, 32 from Bangalore and 26 from Chennai.
Courtesy:
Pradeep Thakur & Josy Joseph,TNN
Feb 17, 2014, 01.35 AM IST
http://timesofindia.indiatimes.com/india/I-T-department-launches-probe-against-600-cash-hoarders/articleshow/30532519.cms

I-T dept rejects Nokia’s offer to pay `2,250 cr to unfreeze Chennai assets

Mumbai: More trouble seems to be brewing for Finnish handset maker Nokia.

In a Delhi High Court hearing on Monday, the company’s offer to pay Indian tax authorities a sum of `2,250 crore in connection with the unfreezing of the Chennai assets of Nokia India Pvt Ltd was rejected by the Income Tax department on grounds that the sum was barely a third of the `6,500 crore tax demand raised on the company.

The bench also questioned Nokia India’s intention behind sending `3,500 crore to its parent company as dividend of 18 years and asked why the amount should not be brought back to the country.

It is learnt that Nokia India, however, stuck to its offer, saying it is for the I-T department to decide whether it is better off with the proposed amount.

Nokia’s Chennai plant was frozen by the government at the end of September, in conjunction with the company’s failure to pay due taxes. However, in a bid to quickly dissolve of the case that directly impacts the Indian arm’s merger into the new Microsoft-Nokia entity – the deadline for the transfer of assets of which is December 12 -- Nokia has sought to pay some part of the tax demand.

Poonam Kaul, director- communications, Nokia IMEA, said, “Nokia will continue to cooperate with the government and the tax authorities on the ongoing tax case. Nokia reiterates that time is of the essence on the asset freeze issue. Nokia calls on the Indian government and tax authority to work with urgency so that the uncertainty about the site’s future can be dispelled before the deadline of December 12.”

Nokia also claims that the I-T department has been repeatedly changing the asking amount in the tax case – the earliest demand which stood at `10,000 crore.

Nokia shareholders have already approved of Microsoft’s takeover of Nokia, and the $7.2 billion deal has reached its final stages.

Courtesy:
Beryl Menezes @berylmenezes
Published Date:  Dec 03, 2013
http://epaper.dnaindia.com/story.aspx?id=56081&boxid=29826&ed_date=2013-12-03&ed_code=820009&ed_page=13

Designers Dolce and Gabbana get jail term for evasion of tax

MILAN: Fashion designers Domenico Dolce and Stefano Gabbana were handed a 20-month suspended prison sentence and a heavy fine on Wednesday for hiding hundreds of millions of euros from Italian tax authorities.

The designer duo, who are nearly as famous as the stars they dress, were not present in the court in Milan and will lodge an appeal against their conviction on charges that they have always denied. “We will read the reasons for the verdict, and we will appeal,” said Massimo d Noia, one of the pair’s defence lawyers after the hearing.

Public prosecutor Gaetano Ruta had asked for a two-and-ahalf-year jail term. However, the two designers will have to pay 5,00,000 euros as a first instalment of a fine that could reach 10 million euros ($13.4 million).

A spokesman for their Dolce and Gabbana company declined to make an immediate comment.
Courtesy:
20 Jun 2013, Hindustan Times (Mumbai), Reuters htmetro@hindustantimes.com
http://paper.hindustantimes.com/epaper/viewer.aspx

'फंसा' देगा 20 हजार से ज्यादा उधार

राजीव शर्मा को एक दिन अचानक 50 हजार रुपये की जरूरत पड़ी। उनके बैंक अकाउंट में महज 10 हजार रुपये थे और क्रेडिट कार्ड से पेमेंट हो नहीं सकता था। राजीव ने फौरन अपने दोस्त अमित गर्ग से 40 हजार रुपये कैश ले लिए और अपना काम निबटा दिया। कुछ दिनों में राजीव ने 40 हजार रुपये कैश अमित को लौटा दिए। दोस्त काम आया। आखिर वो दोस्त ही क्या जो ऐसे वक्त पर काम न आए, लेकिन क्या आपको पता है कि ऐसी दोस्ती इनकम टैक्स वालों की आंखों में खटकती है।

इनकम टैक्स वाले राजीव से पूछ सकते हैं कि 40 हजार रुपये उनके पास कहां से आए और अगर राजीव ने यह कहा कि उन्होंने पैसे अपने दोस्त से उधार लिए थे, तो उन पर पेनल्टी लगाई जा सकती है। मजे की बात यह है कि वक्त पर दोस्त की मदद करने वाले बेचारे अमित गर्ग पर भी पेनल्टी लगाई जा सकती है।

चेक से करें लेन-देन
इनकम टैक्स की धारा 269 एसएस के मुताबिक, कोई भी व्यक्ति अगर किसी दूसरे शख्स से 20 हजार रुपये से ज्यादा की रकम उधार लेता है तो उसका भुगतान अकाउंट पेयी चेक या ड्राफ्ट के जरिए ही होना चाहिए। यह रकम बैंक अकाउंट में भी ट्रांसफर की जा सकती है। कैश से उधार का लेन-देन बस 20 हजार रुपये तक की रकम का ही हो सकता है। अगर 20 हजार से ज्यादा रकम कैश में उधार ली गई तो उधार लेने वाले को भारी जुर्माना लग सकता है। इसी तरह इनकम टैक्स की धारा 269 टी में यह व्यवस्था है कि 20 हजार रुपये से ज्यादा लिए गए उधार की वापसी भी चेक, ड्राफ्ट या बैंक अकाउंट के जरिये ही की जा सकती है। अगर उधार देने वाले ने भी वापस अपना पैसा कैश में ले लिया तो उस पर भी पेनल्टी लग सकती है।

टैक्स चोरी पर लगाम
पहले इनकम टैक्स की यह धाराएं बस कमर्शल लोन के मामले में ही लागू होती थीं, लेकिन अब इसे सामान्य लेनदेन के मामले में भी लागू कर दिया गया है। वैसे, आमतौर पर ऐसे केसों की तादाद बहुत कम होती है, जब इनकम टैक्स विभाग आम लोगों पर इन धाराओं का इस्तेमाल करता है। इन धाराओं का असली मकसद कैश के सोर्स का पता लगाना और टैक्स चोरी करने वालों को पकड़ना है।

भारी पेनल्टी
दोनों ही धाराओं में पेनल्टी उधार ली गई या रीपेमेंट की जा रही रकम के बराबर हो सकती है।

इन मामलों में छूट
अगर वाजिब वजह बता दी जाए तो इन दोनों धाराओं से बचा सकता है यानी ऐसे मामलों में 20 हजार रुपये से ज्यादा कैश लेन-देन पर पेनल्टी नहीं लगती। वाजिब वजहों के बारे में बहुत साफ नियम नहीं हैं, लेकिन फिर भी कुछ वजहें ये हो सकती हैं।

- अगर दो लोगों को खेती से आमदनी है और दोनों ही लोग इनकम टैक्स के दायरे में नहीं आते तो वे कैश से लेन-देन कर सकते हैं। ऐसे लोगों पर यह धारा लागू नहीं होती।

- अगर कोई पार्टनर फर्म में 20 हजार रुपये से ज्यादा का कैश लगाता है या फर्म से लेता है तो उस पर ये धाराएं लागू नहीं होतीं, क्योंकि फर्म से कैश लेना या देना उधार नहीं माना जाता।

- अगर ऐसा उधार संडे को दिया जा रहा हो।

- उधार देने वाले का बैंक अकाउंट ही न हो।

- संडे को अगर कोई अपने किसी संबंधी को इसलिए कैश देता है कि वह पैसा सुरक्षित रहे।
साभार:
प्रभात गौड़, नवभारत टाइम्स | Mar 31, 2013, 08.35AM IST
http://navbharattimes.indiatimes.com/business/personal-finance/savings-investments/loan-more-than-20k-to-friends-will-makes-trouble/articleshow/19297671.cms

ब्लैक से वाइट मनी बनाने के खेल से I-T डिपार्टमेंट हुआ घनचक्कर

मुंबई।। मुंबई में इनकम टैक्स इन्वेस्टिगेशन विंग को ऐसे कुछ बैंक अकाउंट्स मिले, जिनमें एंट्री की संख्या काफी ज्यादा थी। पहले उन्हें मनी लाउंडरिंग से जुड़ी डील का शक हुआ। लेकिन, गहराई से जांच करने पर उन्हें इसके पीछे जबरदस्त नेटवर्क और इसमें शामिल लोगों का पता चला। इसमें डायमंड हाउसेज, कंस्ट्रक्शन फर्में, लोकल ट्रेडर्स और कुछ ऐसे लोग शामिल हैं, जो सिर्फ थोड़े पैसे के लिए अपने नाम का इस्तेमाल होने देते हैं। ब्लैक मनी को वाइट मनी बनाने का यह खेल काफी समय से चल रहा है।

इनकम टैक्स डिपार्टमेंट के एक सीनियर अफसर ने कहा, 'पूरी तस्वीर समझने में हमें थोड़ा वक्त लगा। कुछ लोगों पर हमारी नजर है। जांच चल रही है।' कुछ डायमंड फर्में 3 से 6 महीने के क्रेडिट पर रफ डायमंड इंपोर्ट करती हैं। पेपर पर इंपोर्ट पांच कंसाइनमेंट में इंडिया पहुंचता है। इसमें से सिर्फ एक कंसाइनमेंट डायमंड हाउस से जुड़ा होता है। बाकी 4 डायमंड फर्म के 4 असिस्टेंट रिसीव करते हैं। ये असिस्टेंट डायमंड फर्म के लिए मुखौटे का काम करते हैं।

कस्टम फॉर्मैलिटीज पूरी होने के बाद डायमंड की डिलिवरी लेकर असिस्टेंट्स उसे डायमंड हाउस को दे देते हैं। इसके बदले में उन्हें थोड़ी फीस मिलती है। चार असिस्टेंट्स के पजेशन में फिजिकल डायमंड नहीं होता, लेकिन उनकी एंटिटीज के बुक्स में यह डायमंड होता है। उनकी एंटिटीज ने डायमंड हाउस की ओर से इंपोर्टर का काम किया है। इस तरह से डायमंड हाउस अपना टर्नओवर कम रखने और फ्यूचर में टैक्स की चोरी करने में कामयाब हो जाते हैं।

ट्रांजैक्शन के दूसरे फेज से लोकल ट्रेडर्स और जूलर्स जुड़े होते हैं, जो आम तौर पर डायमंड खरीदने के लिए कैश का इस्तेमाल करते हैं। इन्हें बाद में होने वाली सेल को औपचारिक रूप देने और बुक्स को रेग्युलराइज करने के लिए परचेज बिल्स की जरूरत होती है। असिस्टेंट्स उनका यह काम आसान कर देते हैं। डायमंड कंपनी को डायमंड देने से पहले उसकी डिलिवरी लेने वाले असिस्टेंट्स लोकल ट्रेडर्स को बिल्स प्रवाइड करते हैं, क्योंकि वे ऑफिशल इंपोर्टर हैं। लोकल ट्रेडर्स असिस्टेंट्स के नाम से चेक देते हैं और उनसे परचेज बिल ले लेते हैं। लेकिन, यह असली ट्रेड नहीं होता और सही चेक के बदले में असिस्टेंट्स द्वारा कोई डायमंड नहीं बेचा जाता है।

अंतिम फेज में रीयल एस्टेट कंपनियां, कंस्ट्रक्शन फर्में और बड़े प्रॉजेक्ट्स वाली कुछ इंफ्रास्ट्रक्चर कंपनियां शामिल हो जाती हैं, जिनके पास काफी ज्यादा अन-अकाउंटेड कैश होता है। वे ऐसे मौके की तलाश में रहती हैं, जिससे उन्हें ऑफिशल बुक्स में कैश रूट करने का मौका मिले। कैश बुक्स से बाहर होने पर वे अपनी कंपनियों का कैपिटल नहीं बढ़ा पाती हैं। इस मल्टि-लेयर्ड ट्रांजैक्शन में असिस्टेंट्स (डायमंड फर्मों के), लोकल ट्रेडर्स और कंस्ट्रक्शन/इंफ्रास्ट्रक्चर कंपनियां शामिल होती हैं।

कंस्ट्रक्शन कंपनी असिस्टेंट को कैश देती हैं, जो इसे लोकल ट्रेडर्स को देते हैं। लोकल ट्रेडर्स को वह पैसा मिल जाता है, जिसके लिए उसने असिस्टेंट को चेक में पेमेंट किया था। लोकल ट्रेडर्स को काफी संख्या में चेक लेने में दिक्कत नहीं होती, क्योंकि उन्हें कैश में डील करने की आदत होती है। यहां से जटिल फेज शुरू होता है। असिस्टेंट्स कंस्ट्रक्शन कंपनी द्वारा इश्यू किए गए शेयर को सब्सक्राइब करने के लिए चेक से पेमेंट करता है। चूंकि, लोकल ट्रेडर्स से चेक से मिला पैसा उनके अकाउंट में होता है, जिससे उन्हें शेयर ऐप्लिकेशन मनी चुकाने में दिक्कत नहीं होती। कुछ महीने के बाद कंस्ट्रक्शन कंपनी का प्रमोटर असिस्टेंट्स से मामूली कीमत पर शेयर बायबैक कर लेता है। इस तरह से ये कंपनियां असिस्टेंट्स से चेक लेकर अपना कैपिटल बढ़ाती हैं। वे असिस्टेंट्स को मामूली पेमेंट कर देती हैं।
साभार:
सुगाता घोष/एम पद्माक्षण, इकनॉमिक टाइम्स | Apr 12, 2013, 11.18AM IST
http://navbharattimes.indiatimes.com/business/tax/tax-news/game-of-black-money-converted-to-white-money/articleshow/19499799.cms

Microsoft India comes under I-T scanner

New Delhi: After Nokia and Royal Dutch Shell, the income tax department has sent a demand notice to software giant Microsoft’s Indian arm, which said it has challenged the same.

The IT department reportedly sent the notice to Microsoft seeking details of its income from Indian operations for four years beginning FY06. Details have been sought about income from work done at Microsoft’s Indian research and development sites on several softwares, which were marketed globally.

When reached for comments, Microsoft India said it has approached appellate forums for the resolution of the issue. “Microsoft complies with the tax laws in each jurisdiction in which we operate. We are seeking relief against the transfer pricing (TP) adjustments through the appropriate appellate forums,” it said.

The IT department notice reportedly does not quantify the amount of profits earned by its US-based parent Microsoft Corporation that are attributable to the work performed at its R&D centres in India. The company said: “Since the matter is sub judice, we are unable to provide further details or comments regarding the same. We are hopeful that the Rangachary Committee recommendations on R&D Centers and Safe Harbours will help facilitate resolutions to TP litigations in the IT industry.”

Last year, the government had set up a panel, headed by former Central Board of Direct Taxes chairman N Rangachary, to address issues like approach to taxation of development centres, tax treatment of ‘onsite services’ of domestic software firms and those related to finalizing Safe Harbour provisions. Safe Harbour principles are disclosure practices to check litigations in transfer pricing — an accounting mechanism undertaken by MNCs to reduce tax liabilities. Courtesy:
Courtesy:
AGENCIES
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सर्विस टैक्स चोरी पर हो सकती है संपत्ति जब्त

नई दिल्ली।। रेवेन्यू डिपार्टमेंट ने टैक्स चोरी के बढ़ते मामलों को देखते हुए सर्विस टैक्स चोरी करने वालों को कड़ी चेतावनी दी। रेवेन्यू डिपार्टमेंट ने कहा कि बकाये का भुगतान नहीं करने की स्थिति में उनकी संपत्ति जब्त की जा सकती है। 9,800 करोड़ रुपये के सर्विस टैक्स की चोरी का मामला सामने आने पर यह चेतावनी दी गई।

केंद्रीय उत्पाद एवं सीमा शुल्क बोर्ड (सीबीईसी) की मेंबर (सर्विस टैक्स) लिपिका मजूमदार राय चौधरी ने कहा कि कई मामलों में सर्विस प्रवाइडर्स अपने ग्राहकों से सर्विस टैक्स ले लेते हैं लेकिन उसे सरकार के पास जमा नहीं कराते हैं। सर्विस टैक्स चोरी के कुछ प्रमुख मामलों का जिक्र करते हुए उन्होंने कहा कि इसमें तेल और गैस क्षेत्र में करीब 150 करोड़ रुपये की टैक्स चोरी के मामले हैं। कंस्ट्रक्शन सर्विस क्षेत्र की कंपनियों में 18 करोड़ रुपये की टैक्स चोरी पकड़ी गई जबकि सिक्युरिटी सर्विसेज के क्षेत्र में 86 करोड़ रुपये और मेडिसिन क्षेत्र में 28 करोड़ रुपये की टैक्स चोरी के मामले सामने आए।

उन्होंने कहा, 'सीबीईसी सभी सर्विस प्रवाइडर्स से कानून का पालन करने और बकाया सर्विस टैक्स भुगतान करने की अपील करता है। सर्विस टैक्स का भुगतान नहीं करने पर कानून के तहत उचित कार्रवाई की जाएगी। इसमें ब्याज एवं जुर्माने के साथ टैक्स बरामदगी शामिल है।'

इस मामले में लोगों की संपत्ति जब्त भी की जा सकती है। रॉयचौधरी ने कहा कि विभाग ने वित्त वर्ष के दौरान 2,000 करोड़ रुपये की टैक्स चोरी की वसूली की और अब 7,800 करोड़ रुपये की वसूली की जानी है।

सीबीईसी ने चालू वित्त वर्ष में अप्रैल-दिसंबर के दौरान 9,800 करोड़ रुपये की टैक्स चोरी का पता लगाया जबकि पिछले साल यह राशि 5,000 से 6,000 करोड़ रुपये थी।
साभार:
भाषा | Feb 2, 2013, 03.08PM IST
http://navbharattimes.indiatimes.com/revenue-dept-begins-clampdown-on-service-tax-evaders/articleshow/18304590.cms

भारतीयों के वर्जिन आइलैंड की कंपनियों पर I-T की नजर

मुंबई।। स्विस अकाउंट होल्डर्स के बाद इनकम टैक्स डिपार्टमेंट की नजर विदेश में छिपी कंपनियों पर पड़ी है। विदेश में गुप्त बैंक अकाउंट की जांच करते वक्त इनकम टैक्स डिपार्टमेंट को ब्रिटिश वर्जिन आइलैंड (बीवीआई) में कई भारतीय कंपनियों का पता चला, जो टैक्स हेवेन है।

इनकम टैक्स अफसरों को 140 लोगों का पता चला, जो बीवीआई की ऐसी कंपनियों में शेयरहोल्डर या प्रमोटर हैं। लंदन के फाइनेंशियल एडवाइजर्स टैक्स बचाने के लिए वहां कंपनी खोलने की सलाह देते हैं। इस मामले से वाकिफ एक सूत्र ने बताया, 'इनमें से कई कंपनियां आरबीआई के लिबरलाइज्ड रेमिटेंस स्कीम शुरू करने से पहले वजूद में आई थीं। तब भारतीयों के विदेशी कंपनियों में इनवेस्टमेंट को लेकर कई पाबंदियां थीं।'

2004 में आरबीआई ने इंडिविजुअल को विदेशी रियल एस्टेट और स्टॉक्स में सीधे इनवेस्टमेंट की आजादी दी थी। तब एक आदमी ऐसे एसेट्स में साल भर में 25,000 डॉलर लगा सकता था, जिसे बाद में बढ़ाकर 2,00,000 डॉलर कर दिया गया।

टैक्स हेवेन की कंपनियों का इस्तेमाल ओवरसीज इनवेस्टमेंट, रिश्वत लेने और काले धन को छिपाने के लिए किया जाता है। पिछले कुछ साल से आरबीआई लिबरलाइज्ड रेमिटेंस रूट के इस्तेमाल को हतोत्साहित कर रहा है। उसका मानना है कि नई कंपनियों का इस्तेमाल मनी लाउंडरिंग के लिए किया जा सकता है।

सीनियर टैक्स ऑफिशियल्स के मुताबिक, एचएसबीसी जेनेवा में भारतीयों के 600 बैंक एकाउंट्स की जांच के वक्त ऐसे कई मामलों का पता चला था। एक सूत्र ने बताया कि बीवीआई की कंपनियों से भारत में इनवेस्टमेंट का एक भी मामला सामने नहीं आया है। इनकम टैक्स डिपार्टमेंट ने इस मामले में फाइनेंस मिनिस्ट्री से भी बात की है।

भारत ने वर्जिन आइलैंड के साथ फरवरी, 2011 में टैक्स इंफॉर्मेशन एक्सचेंज एग्रीमेंट किया था। इसके तहत बीवीआई में खुलीं कंपनियों से जुड़ी जानकारी मांगने के लिए उसे दखल देना पड़ा। यह एग्रीमेंट उसी साल 22 अगस्त से लागू हुआ था। इसमें एक शर्त है, जिसके मुताबिक बैंकिंग और मालिकाना हक से जुड़ी जानकारियां देनी होंगी। एक सीनियर चार्टर्ड एकाउंटेंट ने बताया, 'वर्जिन आइलैंड में कंपनी खोलने के लिए वहां जाने की जरूरत नहीं है। यह बैंक एकाउंट खोलने से ज्यादा आसान है।'
साभार:
इकनॉमिक टाइम्स | Apr 1, 2013, 09.35AM IST
सुगाता घोष/एम पद्माक्षण
http://navbharattimes.indiatimes.com/business/tax/tax-news/move-over-switzerland-british-virgin-islands-is-the-new-tax-haven/businessarticleshow/19311795.cms

SHELL SHARE SCANDAL: Shell India to challenge tax evasion order

Recent media reports on tax evasion are baseless, says the company
New Delhi: Shell India Pvt. Ltd, the Indian unit of Royal Dutch Shell Plc, will challenge an order by India’s income tax department that accused it of evading taxes by under-pricing an intra-group share transfer by Rs 15,220 crore, a top group executive confirmed on Monday.

“Recent media reports on tax evasion are baseless and Shell India will challenge this order strongly and is evaluating all options for redress,” Yasmine Hilton, chairman of the Shell Group of Companies in India, said in an emailed statement on Monday.

Mint reported on Saturday, citing a person who didn’t want to be named, that Shell India plans to contest the I-T department’s order. A spokesperson for the India arm confirmed receipt of a notice from the tax department, the report said.

The company has the option of approaching the dispute resolution panel or the commissioner of income (appeals) for contesting the order.

Shell India’s LNG terminal at Hazira, Gujara - LiveMint.com

Transfer pricing refers to the practice of arm’s length pricing for transactions between group companies based in different countries to ensure that a fair price—one that would have been charged to an unrelated party—is levied.

“Shell India’s considered view is that the transfer pricing order is based on an incorrect interpretation of the Indian tax regulations and is bad in law as this is a capital receipt on which income tax cannot be levied. Funding of a subsidiary through issue of shares is common in India and globally,” Shell India said in the statement.

India has seen a sharp increase in disputes relating to transfer pricing, with the tax department adopting an aggressive stand while arriving at a price for the transaction. The transfer pricing assessment by the tax department for the year ended March 2008 saw the government raising claims to the tune of $9.5 billion.

“Taxing the money received by Shell India is in effect a tax on foreign direct investment (FDI), which is contrary not only to law but also to the spirit of the recent global trip by the finance minister to attract further FDI into India”, said Hilton.

This comes in the backdrop of the $2 billion tax dispute between Vodafone Group Plc and the Indian tax authorities, though the transactions are of a different nature.

Television channel ET Now reported on 31 January that “the income tax order relates to the issue of 87 crore shares by Shell India to an overseas group entity, Shell Gas B.V., in March 2009. The shares were issued at Rs.10/share, which has been contested by the income tax authorities in Mumbai. The income tax department has challenged the valuation methodology of Shell India and has pegged the value of the shares at Rs.180/share instead”.

The tax department concluded the recent round of transfer pricing on 30 January for the period ended March 2009.

“The share issuances were in accordance with the terms of the foreign investment policy, the prevailing exchange control regulation, the applicable corporate and related laws. The valuation of the shares was undertaken by a certified independent valuer who assessed the value (in line with the foreign investment and exchange control laws) to be below Rs 10 per share and the issue was made at Rs 10 per share. The valuation certificates were filed with the regulatory authorities. The transfer pricing order has valued these at Rs 183 per share even though there are no provisions under the income tax law for such revaluation,” Shell clarified in its statement.

Apart from running the liquefied natural gas terminal at Hazira on India’s west coast, Shell India also has a presence in domestic fuel sales. The company has invested $1billion in India.
Courtesy:
Remya Nair | Utpal Bhaskar
First Published: Mon, Feb 04 2013. 05 56 PM IST
http://www.livemint.com/Companies/3cXN4BVXIDJdaoFY7LbUfL/Tax-evasion-reports-baseless-Shell-India.html

SHELL SHARE SCANDAL: Shell India accused of tax evasion

Income-tax department says firm had underpriced intragroup share transfer by Rs15,000 cr and evaded taxes consequently
New Delhi: The Indian arm of Royal Dutch Shell Plc , Shell India Pvt. Ltd, has been accused by the income-tax (I-T) authorities of underpricing an intragroup share transfer by Rs. 15,000 crore and consequently evading taxes, said a person familiar with the development.

Following the notice, which is one of the biggest transfer pricing orders by the I-T department, Shell India plans to challenge the assessment, added the same person, who did not want to be identified.

A spokesperson for the India arm confirmed receipt of the notice from the tax department.

A Shell India spokesperson said in an emailed response: “Shell India tax experts have indeed been in discussions with the Indian tax authorities on this issue over the past week and do not agree with their views. The tax officer has now made an assessment and passed an order. We will review the order and initiate consequent appropriate actions.”

A Royal Dutch Shell spokesperson didn’t immediately respond to Mint’s queries.

Shell India’s LNG terminal at Hazira, Gujara - LiveMint.com

Transfer pricing refers to the practice of arm’s length pricing for transactions between group companies based in different countries to ensure that a fair price—one that would have been charged to an unrelated party—is levied.

India has seen a sharp increase in disputes relating to transfer pricing, with the tax department adopting an aggressive stand while arriving at a price for the transaction. The transfer pricing assessment by the tax department for the year ended March 2008 saw the government raising claims to the tune of $9.5 billion (around Rs.50,635 crore today).

With multinational companies looking to expand their footprint in India, the issue of arm’s length pricing has come under increasing scrutiny of the transfer pricing wing of the I-T department. It also comes at a time when the government is struggling to meet its fiscal deficit targets on account of slowing revenue collections, especially on the corporate tax front.

Television channel ET Now had reported that “the income-tax order relates to the issue of 87 crore shares by Shell India to an overseas group entity, Shell Gas BV, in March 2009. The shares were issued at Rs.10/share, which has been contested by the income-tax authorities in Mumbai. The income-tax department has challenged the valuation methodology of Shell India and has pegged the value of the shares at Rs.180/share instead”.

“The issue is being studied in detail. The legal counsels are being consulted whether to approach a court of law or the I-T department. There are a lot of infirmities in the order,” said the person cited above.

The company has the option of going to the dispute resolution panel or to the commissioner of I-T (appeals).
This comes in the backdrop of the $2 billion tax dispute between Vodafone Group Plc and the Indian tax authorities, though the transactions are of a different nature.

Shell India told tax authorities its shares were valued at around Rs.7 and, therefore, the allotment of shares to the overseas group entity at Rs.10 each was at the market rate, according to ET Now.

“The transfer pricing officials challenged the manner in which the valuation was done using discounted free cash flow method,” it said. The valuation was higher than what had been shown, the channel added.
The tax department concluded the recent round of transfer pricing on 30 January for the period ended March 2009.

A Central Board of Direct Taxes spokesperson couldn’t be contacted.

Apart from running the liquefied natural gas terminal at Hazira on India’s west coast, Shell India also has a presence in domestic fuel sales.

“After the conclusion of the audit cycle, the transfer pricing order goes to the assessing officer, who will consolidate other issues as well and come out with a comprehensive draft order,” explained Rohan Phatarphekar, India head (transfer pricing) at audit and consulting firm KPMG.

To avoid such disputes, the government notified advance pricing agreements (APA) last year. APA is an agreement between a taxpayer and the tax department on a transfer pricing procedure for a particular set of transactions entered into before the deal.

According to Rajat Kathuria, director and chief executive at Indian Council for Research on International Economic Relations, the case may turn into another long-drawn scrap that will discourage investors for a while.

“It will become another event which will worry an investor sitting on the fence. But, in the longer run, it is unlikely to deter investors from making investment decisions in the country,” he said. “The timing of this incident means that it will take a lot of time to fructify as they will most probably move court. I don’t think they (the government) could realistically anticipate the money to come this fiscal, if the idea is to bridge the fiscal deficit by this.”

Kathuria said that there is an urgent need to fast-track such processes. “The Vodafone case is still going on and this (Shell India) could be another such case. A fast-track solution to such problems will not hassle foreign investors,” he said. However, “demands of this magnitude do not come to closure very quickly”.
Courtesy:
Utpal Bhaskar | Remya Nair | Amrit Raj
First Published: Fri, Feb 01 2013. 12 01 PM IST
http://www.livemint.com/Companies/VzRIkNIEGaV3Gbd5MdhdNL/IT-department-alleges-under-pricing-of-15000-cr-by-Shell.html

HSBC SCAM : PC: I-T probing HSBC’s list of foreign accounts

New Delhi: Finance minister P Chidambaram on Monday said the income tax department was probing the HSBC list of accounts held by Indians abroad, while securing the passage of the Prevention of Money Laundering Bill in Rajya Sabha.

“HSBC list of accounts is being investigated by the income tax and other departments,” Chidambaram said in his reply to the discussion on the money laundering bill.

The case of money laundering, he explained, would arise only if there was a predicate offence and the proceeds of that were used for money laundering purposes.

The Prevention of Money Laundering (Amendment) Bill was passed by voice vote. It seeks to widen the definition of money laundering to include concealment, acquisition, possession and use of proceeds of crime as criminal activities. The bill was earlier passed by the Lok Sabha. It provides for removal of the Rs 5 lakh limit for fine laid down in the existing Act.

Chidambaram’s statement that the I-T department was probing the list of nearly 700 foreign accounts held by Indian individuals/entities came a month after Aam Aadmi Party national convener Arvind Kejriwal accused the government of not acting adequately on a list of HSBC accounts, including those held by top industrialists, shared by the French government in June 2011.

The charges were, however, denied by the industrialists, including Mukesh Ambani who was named by Kejriwal as one of the account holders. A persistent Kejriwal, however, released the HSBC account numbers of Mukesh and Anil Ambani in Mumbai last week.

Meanwhile, ahead of the bill’s passage by the Rajya Sabha on Monday, Chidambaram emphasized that the PMLA had been amended twice earlier in 2005 and 2009, and must now be amended again in line with the international law, India being a member of the Financial Action Task Force on money laundering. Chidambaram said the bill seeks to enlarge definition of definition of predicate offences of money laundering and include activities that are defined as crime under various other laws.

The minister said the amendment would introduce the concept of 'corresponding law' to link the provisions of Indian law with the laws of foreign countries.

It proposes to make provision for attachment and confiscation of the proceeds of crime even if there is no conviction so long as it is proved that offence of money laundering has taken place and property in question is involved in money-laundering. It also provides for appeal against the orders of the Appellate Tribunal directly to the Supreme Court.

Earlier, initiating the debate on the bill, BJP’s Prakash Javadekar expressed contentment at the government’s acceptance of 18 recommendations of the parliamentary standing committee.
Courtesy:
TIMES NEWS NETWORK
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I-T dept alleges tax evasion by Vodafone

New Delhi: The Income Tax Department has told the Supreme Court that telecom major Vodafone suppressed real transactions in transfer of its assets to evade taxes over Rs 4,000 crore.

The allegation was reiterated in additional documents filed in an appeal against the Gujarat High Court’s verdict that ratified the plan of Vodafone Essar and its six other associate companies to transfer their passive infrastructure assets, including mobile towers and equipment worth Rs 20,000 crore, to group firm Vodafone Essar Infrastructure. It claimed that the scheme was intended to avoid capital gains tax worth Rs 3,500 crore and stamp duty worth Rs 600 crore and the transfer of these assets would have attracted Central Sales Tax or VAT and other provisions of the I-Tax Act, 1961.

According to the fresh affidavit, Vodafone, Bharti and Idea formed a JV (Indus Towers) for pooling in their existing passive assets. Instead of directly transferring these assets to Indus, a conduit in form of a colourable device was developed to evade taxes whereby the assets were first transferred into transferee companies and then these companies were amalgamated into Indus Towers.

“The respondent company suppressed that the transferor company had in December 19, 2008 entered into an Indefeasible Right to Use Agreement with Indus whereby the exclusive right to use the passive asset had already been granted to Indus with effect from January1, 2009 (date prior to the effective date of scheme),” the affidavit said.

The I-T department further said that the HC failed to appreciate that at the time when the board of directors of the transferor company approved the scheme, the firm lacked the corporate power to make gifts. FE

‘Need Mumbai, Delhi, Kolkata licence extension’
MUMBAI: Vodafone India on Thursday said it has sought extension of its licence period for Delhi, Mumbai and Kolkata circles, which are coming up for renewal in November 2014.

The telecom operator has sought the extension under clause 4.1 of the licence agreement under which the government can extend the period of licence by 10 years at one time if the request is made the operator during the 19th year of the licence period.

The government is working on conducting auction of spectrum in 900 MHz band for Delhi, Mumbai and Kolkata circles during this financial year. PTI
Courtesy:
Indu Bhan: New Delhi, Dec 21 2012, 02:25 IST
http://www.financialexpress.com/news/it-dept-alleges-tax-evasion-by-vodafone/1048319/0