Google India Slapped with Income Tax Notice
Many IT firms like Infosys, Wipro, Mahindra Satyam has also received notice from tax department before Google India. In August 2011, the department has ordered Satyam Computer Services, currently Mahindra Satyam, to pay a tax of
2,114 crore for assessment years 2002-03 and 2007-08. The Additional Commissioner of Income Tax has sent draft of proposed assessment orders together with draft notices to the company under the Income Tax Act, 1961, for
1,037.69 crore and
1,075.73 crore for assessment years 2002-03 and 2007-08, respectively. The draft of the proposed assessment orders proposes among disallowance of tax exemptions or deductions claimed by the company.
In February 2011, the department has also slapped a tax demand of over
450 crore on software giant Infosys Technologies for wrongfully claiming tax exemption on onshore services by declaring them as software exports. Infosys rival Wipro also got an inquiry notice from the Income Tax Department in May 2011 for the assessment year 2008-09.