Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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: cpt :: TDS :: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: due date for vat payment :: ACCOUNTING STANDARDS :: VAT RATES :: articles on VAT and GST in India :: list of goods taxed at 4% :: VAT Audit :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company
 
 
« General »
 How you can reduce your tax to zero if you have income within Rs 10 lakh
 NRIs’ overseas bank info needed only for tax refund
 Non-performance: I-T dept transfers 245 commissioners
 Income Tax efiling: Tax implications resulting from clubbing of income
 Guidelines for selection of cases for scrutiny during the financial-year 2017-2018-regd
  GST: How companies are gaming the system
 Goods And Services Tax transparency: Elimination of added taxes to boost investment in realty
 In a first, Income Tax department to charge govt official under new benami law
 Income Tax Return Filing: 10 common mistakes people make while filing return of income
 Income Tax efiling: A few essential facts for senior citizens to keep in mind
 Pre-GST discounts get Maharashtra 16% more sales tax in three months

I-T department probes alleged tax violations by American Embassy School in Delhi
February, 10th 2014

The Income Tax department has begun a "discreet" probe into alleged tax violations by the elite American Embassy School here even as the external affairs ministry awaits a response from their officials on the details of the teachers working at the school and their salaries.

The I-T department's exemption wing, which deals with tax related issues pertaining to charitable institutions and those bodies which have been granted I-T waivers, has begun a "discreet probe into the financial aspects" and alleged violation of Indian tax laws, sources said.

"Once the preliminary information is gathered, the tax department would be taking a view on issuing notices to the authorities concerned. Also, the CBDT would be informed as this is not a regular case and involves relations between two countries," the sources added.

As per the information available with the government, several teachers at the American Embassy School were working "illegally", in violation of both tax laws and their visa status.

The government has earlier indicated that these violations were serious and it was likely to initiate action in this regard.

However, MEA is still awaiting a response on the information sought in December last year on visa and other details of all the teachers at these schools and their salaries along with the bank account details of their Indian staff members.

India, in 1973, had granted "tax exempted status" to 16 teachers of the school. However, as per information available with the government, there were many more teachers who were working but not shown as such.

However, in Washington last month, US state department spokewoman Jen Psaki responded to reports of an Indian government inquiry into allegations of tax evasion with the statement that the school "is not run by the embassy (and) only about a third of the students there are American".

India initiated a slew of initiatives in retaliation against the arrest and strip-search of its senior diplomat Devyani Khobragade, a 39-year-old 1999-batch IFS officer, on December 12 in New York on charges of visa fraud.

Extra privileges given to US diplomats were withdrawn and activities of various American institutions were put under scrutiny as part of Indian government's stern reaction to the issue.

The sprawling school, located next to the US embassy on American government-owned land, has about 1,500 students on its rolls, nearly 500 of whom are from the US.

The remaining students hail from several different countries and also include some locals.

"I-T exemptions are made for an agreed number of entities after proper circulars are drawn up officially. Tax authorities have to be informed about any scaling up or down in these numbers. The information that has come is that some violations are being done in these numbers and the department will verify that," the sources said.

Media reports have suggested that the US authorities have advised female spouses to fill up their visa details as that of a "housewife", which is an apparent effort to evade the tax net.

Apart from withdrawing extra privileges of the US diplomats, India also asked the US embassy to "discontinue" commercial activities undertaken by the American Community Support Association (ACSA) from its premises.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - About Us

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