The Department of Income Tax is currently scrutinising the tax liabilities of Unitech, Swan Telecom, Videocon Telecommunications, Loop Telecom and Kalaignar TV, as part of its ongoing investigations of the transactions undertaken by companies that were awarded licences in 2008.
This was conveyed to the Joint Parliamentary Committee (JPC) that is examining the entire gamut of policy prescriptions in the telecom sector between 1998 and 2009.
The Department of Income Tax has told the JPC that they are investigating the source of funds of the licencee companies (those awarded in 2008) for payments to the Department of Telecommunications (DoT) for acquiring licences.
The Department of Income Tax is also scrutinising the tax implication of dilution of equity to other foreign or domestic companies, post allotment of the licences.
In so far, the Department of Income Tax has found that the companies had raised funds from domestic sources, as well as from Mauritius, Hong Kong, Dubai, etc.
The companies have defined the funds raised from domestic sources have been defined as loans, internal accruals and investments.
