INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Evidence collected throughout the study at the offices of the BBC has shown that tax has actually not been paid on certain
remittances which have actually not been disclosed as earnings in India by the foreign entities of the group, the tax department stated in
its very first official statement on the surprise survey operations.The income-tax department had carried out marathon survey operations at
the offices of the BBC in the nationwide capital and Mumbai that ended on Thursday late night
The survey had actually triggered a bitter war of words in between the ruling BJP and the opposition celebrations
The study exposed that despite significant intake of content in different Indian languages (apart from English), the income/profits revealed
by various group entities is not commensurate with the scale of operations in India.The tax department said the study operations likewise
showed that services of seconded workers have actually been used for which repayment has been made by the Indian entity to the foreign
Such remittance was likewise responsible to go through withholding tax, which has not been done
Even more, the survey has likewise tossed up a number of disparities and inconsistencies with regard to Transfer Pricing paperwork, the
statement from the tax department stated without calling BBC.It stated such discrepancies relate to level of pertinent Function, Asset and
Risk (FAR) analysis, inaccurate use of comparables that are applicable to identify the right Arms Length Price (ALP) and inadequate income
apportionment, to name a few
It made it clear that statements of only those staff members were taped whose function was important, consisting of those connected to,
mostly, financing, content advancement and other production related functions
Even though the department worked out due care to tape-record statements of only essential personnel, it was observed that dilatory
techniques were utilized, including in the context of producing documents/agreements sought
In spite of such stance of the group, the study operation was carried out in a way so as to help with continued routine media/channel
activity, the declaration included
Throughout the operations, tax department authorities had repeated that it was a study operation and not a raid saying the department was
The BBC, in its declaration on Thursday, had restated that it will continue to work together with the authorities and hoped the issue is
It likewise stated that it will continue to stand by associates and journalists who, it stated, will continue to report without fear or
The IT study of the BBC workplaces had actually come weeks after a huge controversy over a documentary by the British state-funded
broadcaster on the 2002 Gujarat riots.The ministry of external affairs had actually called the documentary as a propaganda piece developed
to press a particular discredited story
The Centre had asked YouTube and Twitter to obstruct videos of the BBC documentary.The tax department said the survey operations also showed
that services of seconded workers have actually been made use of for which reimbursement has been made by the Indian entity to the foreign
