Several MNCs get tax notices on their investments in India: Report
1 min read . Updated: 13 Apr 2023, 12:22 PM IST
Premium- The income tax department has reportedly sent a tax demand notice to Amazon Web Services (AWS) of ₹549 crore last month
The income tax officials have started to issue show cause notices to several multi-national companies(MNCs) asking about the valuation of their investment in the country. The authorities have even sought details like travel history and along with passport for the last four years according to a report published in Economic Times.
The move by tax officials will likely to cause some jitters at the MNCs at a time when the government is looking to woo foreign investments in the country.
Indian tax authorities have alleged that a number of big multinational companies have not passed on benefits from a tax cut to customers, a senior government official told Reuters in 2019.
The income tax department has reportedly sent a tax demand notice to Amazon Web Services (AWS) of ₹549 crore last month. According to a report by Economic Times, the notice sent to AWS is based on findings that the company was imposing a fee for offering cloud computing services to Indian entities. The I-T sleuths told the daily that the receipts from cloud computing services were like royalty and fee for technical services (FTS) and chargeable to tax in India.
"There are many companies that are sending huge amounts in the name of royalty payment to their parent companies just to evade tax. We have sent notices in some cases and are already in the process of sending more notices," an official told ET.