The tax division detected that AWS was charging a payment for offering cloud computing providers to Indian entities however not paying tax on it, they stated.
Amazon India did not reply to queries.
The division has raised a ₹190.85 crore tax demand for the FY15 and ₹358.27 crore for FY17, invoking Section 147 of the Income Tax Act. The final discover was despatched within the final week of January, stated one official.
The assessing officer can concern a discover below Section 147 of the Income Tax Act if there’s cause to consider some revenue chargeable to tax has escaped evaluation.
The division claims that the receipts from cloud computing providers have been within the nature of royalty and payment for technical providers (FTS) and chargeable to tax in India. The official added that the quantity additionally contains curiosity on the pending tax dues however not a penalty.
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Another official stated that the division had shortlisted many corporations that have been transferring cash to their mum or dad corporations however weren’t paying taxes.”There are many companies which are sending huge amounts in the name of royalty payment to their parent companies just to evade tax. We have sent notices in some cases and are already in the process of sending more notices,” the official added.
In August final 12 months, the revenue tax division had provisionally connected the mounted deposit accounts of Xiaomi India on grounds of tried tax evasion. It had argued the corporate diminished its taxable revenue in India by paying royalties to entities positioned outdoors.
Source: economictimes.indiatimes.com