Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: articles on VAT and GST in India :: cpt :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT Audit :: empanelment :: ACCOUNTING STANDARD :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: VAT RATES :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: TDS
General »
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces

IBM says will 'aggressively' contest India tax demand
November, 07th 2013

The local unit of US technology services giant IBM said Wednesday it will "aggressively defend itself" through legal means against an Indian tax demand for a reported $865 million.

The Indian unit of IBM declined to say how much tax authorities were seeking, but local media have said the company has been told to pay 54 billion rupees ($865 million) in arrears for allegedly under-reporting its 2008-2009 earnings.

"IBM does not agree with the tax department's claims and will aggressively defend itself through the appropriate judicial process," an IBM India spokeswoman told AFP.

The case is the latest pitting a multinational against Indian income tax authorities, and comes as the country has been seeking to portray itself as more investor-friendly to draw much-needed foreign investment.

India is locked in tax battles with Vodafone, Nokia and Royal Dutch Shell, among other international companies.

The tax department alleges that New York-based IBM did not fully report its Indian export earnings, according to media reports. A spokesman for the tax department would not immediately comment.

IBM, whose operations in India span global business services, technology and software, denied any wrongdoing.

"Fundamental to IBM's culture and business model is that we act with integrity wherever we do business," the spokeswoman said in an emailed statement.

The Mumbai newspaper DNA reported that tax authorities were combing IBM India's tax returns back to the financial year 2000-2001 for possible irregularities.

Information technology services companies in India normally receive tax exemptions on profits earned from the export of software and related services from facilities in so-called software technology parks and special economic zones.

But due to differences in the way tax rules have been interpreted, there has been a string of disputes. The tax department in many instances has denied claims by the IT companies for exemptions.

IBM, one of the biggest technology employers in India with an estimated workforce of around 150,000 people, uses the country as a base for its global services delivery.

India is also a vast market for the company, which generates around $3 billion in annual revenue from the country. Nearly half comes from domestic operations and the other half from exports and other sources, according to industry estimates.

IBM does not give country breakdowns of its revenues.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions