The Central Board of Direct Taxes (CBDT) has told the Joint Parliamentary Committee (JPC) examining the 2G spectrum issue that Norway-based Telenor has confirmed that it has permanent establishments in India, which makes it liable to pay taxes on revenue earned from the country.
In a presentation before the JPC, the CBDT said Unitech Wireless had made payments to Telenor and its associate companies for the purchase of services and equipment.
Therefore, these foreign companies are liable to pay tax in India, the CBDT added.
On the issue of statutory notices, the companies have confirmed that they have permanent establishments in the country and four such firms have provided returns of income for 2010-11 and disclosed a total income of about Rs 250 million.
The CBDT has also said that their tax liability for the preceding years is being scrutinised. The tax authorities are also examining instances of issuance of shares at substantial premium mainly to foreign companies. However, these shares were transferred at par or at a very low premium to group companies, the CBDT said.
The CBDT is also examining the genuineness of remittances made to foreign investors for purchase of goods/services as well as tax implications in relation to witholding tax and taxability in India.
