Surveys by the Income Tax department on BBC Offices in Delhi and Mumbai that commenced yesterday continue for the second day today.
The corporation says it is “fully co-operating” with the authorities.
Unlike many reports, the action by the Income Tax sleuths is ‘’survey’’ which is conducted by the authorities to ascertain the actual income. It is not a ‘search’ or ‘raid’ (a raid is conducted with a pre-conceived notion of tax evasion).
BBC, in India, is registered with the Company Registrar (MCA) as a ‘Liaison Office’ of a Foreign Company incorporated in the United Kingdom.
Apparently, the survey is being conducted after the local BBC office failed to respond to the notices issued by the tax authorities to clarify issues pertaining to international taxation and transfer pricing of the subsidiary firm. Possibly, it is linked to suspicion of tax evasion in India by claiming services and costs that were not incurred.
When asked about BBC Offices in India being surveyed by Indian authorities, US State Department spokesman expressed inability of offer any judgement.
The opposition party leaders have slammed the government for the action on BBC offices in India.