The survey operations also revealed that services of seconded employees have been utilized for which reimbursement has been made by the Indian entity to the foreign entity concerned.
The income tax department after three days of extensive surveys at the BBC Mumbai and Delhi offices said that “Irregularities detected on certain tax payments”: Income Tax statement on ‘survey’ at BBC offices.”
During the course of the survey, the Department gathered several pieces of evidence pertaining to the operation of the organization which indicates that tax has not been paid on certain remittances which have not been disclosed as income in India by the foreign entities of the group, reported Hindustan Times.
The survey operations also revealed that services of seconded employees have been utilized for which reimbursement has been made by the Indian entity to the foreign entity concerned.
Such remittance was also liable to be subject to withholding tax which has not been done. Further, the survey has also thrown up several discrepancies and inconsistencies with regard to Transfer Pricing documentation. Such discrepancies relate to the level of relevant Function, Asset, and Risk (FAR) analysis, incorrect use of comparables that are applicable to determine the correct Arms Length Price (ALP), and inadequate revenue apportionment, among others.
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