New Delhi: The government has initiated proceedings against a foreign company as well as its Indian group firm for tax demand of as much as Rs 10,247 crore, Minister of State for Finance Jayant Sinha said in Parliament Friday.
Without naming anyone, he spoke of transfer of shares involving a foreign multinational company and an Indian group firm.
"Proceedings under relevant provisions of the Income Tax Act, 1961, have been initiated against the foreign company as well as the Indian group company, which have resulted in tax demand of approximately Rs 10,247 crore, along with interest, in the case of Indian company," Sinha said in a written reply in the Lok Sabha.
He was replying to a question whether some companies, particularly in the oil and gas exploration sector, have transferred their assets from overseas to subsidiaries in India prior to their listing and thus, evaded tax payments.
Furthermore, the minister said amendments have been made in the Income Tax Act to clarify the intention of the legislature that transfer of an asset, directly or indirectly, deriving its value substantially from assets in India is taxable in India.
"Further, the Finance Bill, 2015 proposes to amend Section 9 to define the term 'substantially', 'value of an asset' and the date on which such value of the asset has to be taken," he added.
