Lok Sabha Question No. 1768 (UNSTARRED), answered on 2020-03-02
Subject: Payment of Tax by Foreign Companies
Ministry: FINANCE
Asked by: Arvind Ganpat Sawant, Krupal Balaji Tumane

## Government of India Ministry of Finance Department of Revenue LOK SABHA UNSTARRED QUESTION NO. †1768

TO BE ANSWERED ON MONDAY, FEBRUARY 02, 2020 PHALGUNA 12, 1941-42 (SAKA)

## PAYMENT OF TAX BY FOREIGN COMPANIES

†1768. SHRI ARVIND GANPAT SAWANT: SHRI KRUPAL BALAJI  TUMANE:

Will the Minister of FINANCE be pleased to state:

- (a) the details of foreign companies functioning in the country state-wise including Maharashtra and the revenue/profit earned along with the tax paid by them during the last three years and current year;

- (b)  whether the said companies have defaulted in their tax payments during the said period and if so, the details of such companies during the said period company-wise and year-wise;

- (c)   the revenue loss incurred by the exchequer during the said period; and

- (d)  the details of punitive action taken by the Government against the said companies to recover the outstanding taxes along with the steps taken to prevent such practice?

## ANSWER MINSTER OF STATE IN THE MINISTRY OF FINANCE (SHRI ANURAG SINGH THAKUR)

- (a) : The details of number of e-returns submitted to Central Board of Direct Taxes (CBDT), by foreign companies depicting net profit before taxes and net tax liability, as reported in Form ITR-6, State/UT-wise including Maharashtra, for the Assessment Year (AY) 2016-17 to 2019-20 (upto 15/02/2020), is exhibited in Annexure-I. Central Board of Indirect Taxes is not maintaining State-wise data of companies.
- (b) : As per CBDT, the details of amount payable in case of foreign companies submitting an ITR-6 of AY 2016-17 to AY 2019-20 with amount payable more than Rs.100/- as reported by the taxpayer in Part-B of Income Tax Return is as follows:

## *Upto 15/02/2020

(c) : There is no loss to the exchequer as no demand has been written off in past 3 years or in the current year by the CBDT.

(d) :  After raising of demand by CBDT, if no stay is granted on payment of demand by the Assessing Officer or by any other authority such as Income Tax Appellate Tribunal/High Court etc., demand is taken as collectible and all steps as provided under the law are taken to collect the same. These steps include imposition of penalty, arrest, attachment of bank accounts, debtors, movable and immovable properties, etc.

*****

| AY       |   Taxpayers (Nos.) |   Amount Payable (Rs. In Crore) |
|----------|--------------------|---------------------------------|
| 2016-17  |                 20 |                            0.47 |
| 2017-18  |                 43 |                            2.96 |
| 2018-19  |                114 |                           19.19 |
| 2019-20* |                 85 |                            6.17 |

## Annexure-I

The State/UT wise summary on number of e-Returns submitted by Foreign Companies alongwith Profit-Before-Taxes and Net-TaxLiability as reported by Taxpayer in latest e-Returns (ITR-6) of AY 2016-17 to AY 2019-20 submitted upto 15-Feb-2020 is as following :

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| e-Returns                                                                           | e-Returns                                                                           | AY 2016-17                          | AY 2016-17                                               | AY 2016-17                         | AY 2017-18                           | AY 2017-18                                               | AY 2017-18                         | AY 2018-19                          | AY 2018-19                                               | AY 2018-19                         | AY 2019-20                          | AY 2019-20                                               | AY 2019-20                         |
|-------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|-------------------------------------|----------------------------------------------------------|------------------------------------|--------------------------------------|----------------------------------------------------------|------------------------------------|-------------------------------------|----------------------------------------------------------|------------------------------------|-------------------------------------|----------------------------------------------------------|------------------------------------|
| submitted by Non- Domestic Companies for AY 2016-17 to AY 2019-20 upto 15- Feb-2020 | submitted by Non- Domestic Companies for AY 2016-17 to AY 2019-20 upto 15- Feb-2020 | Number of PANs submitti ng e-Return | Schedule PL : Net Profit before taxes (50 - 51iii - 52 ) | Part B TTI : (7) Net Tax Liability | Number of PANs submitti ng e- Return | Schedule PL : Net Profit before taxes (50 - 51iii - 52 ) | Part B TTI : (7) Net Tax Liability | Number of PANs submitti ng e-Return | Schedule PL : Net Profit before taxes (50 - 51iii - 52 ) | Part B TTI : (7) Net Tax Liability | Number of PANs submitti ng e-Return | Schedule PL : Net Profit before taxes (50 - 51iii - 52 ) | Part B TTI : (7) Net Tax Liability |
|                                                                                     |                                                                                     |                                     | (Rs. Crore)                                              | (Rs. Crore)                        |                                      | (Rs. Crore)                                              | (Rs. Crore)                        |                                     | (Rs. Crore)                                              | (Rs. Crore)                        |                                     | (Rs. Crore)                                              | (Rs. Crore)                        |
| S R                                                                                 | State/UT Name                                                                       | Count of PAN_ NO                    | Sum of INDAS/STD PROFIT_BEF ORE_TAXES                    | Sum of NET_TAX _ LIABILTY          | Count of PAN_ NO                     | Sum of INDAS/STD PROFIT_BEFO RE_TAXES                    | Sum of NET_TAX _LIABILT Y          | Count of PAN_ NO                    | Sum of INDAS/STD PROFIT_BEF ORE_TAXES                    | Sum of NET_TAX _LIABILT Y          | Count of PAN_ NO                    | Sum of INDAS/ST D PROFIT_B EFORE_T AXES                  | Sum of NET_TAX _LIABILT Y          |
| 1                                                                                   | ANADAMAN AND NICOBAR ISLANDS                                                        | 1                                   | 0.00                                                     | 0.59                               | 1                                    | (0.00)                                                   | -                                  | 1                                   | (0.81)                                                   | -                                  |                                     |                                                          |                                    |
| 2                                                                                   | ANDHRA PRADESH                                                                      | 24                                  | 0.44                                                     | 1.11                               | 18                                   | (3.02)                                                   | 0.63                               | 23                                  | 15.83                                                    | 9.39                               | 22                                  | 20.65                                                    | 12.10                              |
| 3                                                                                   | ASSAM                                                                               | 6                                   | 2.03                                                     | 1.50                               | 5                                    | 0.18                                                     | 0.08                               | 7                                   | 0.03                                                     | 0.04                               | 3                                   | (0.04)                                                   | 0.02                               |
| 4                                                                                   | BIHAR                                                                               | 27                                  | (1.92)                                                   | 0.11                               | 15                                   | (0.41)                                                   | 0.00                               | 30                                  | (0.12)                                                   | 0.01                               | 19                                  | 0.80                                                     | 0.33                               |
| 5                                                                                   | CHANDIGAR H                                                                         | 1                                   | 3.82                                                     | 2.02                               | 6                                    | (0.09)                                                   | -                                  | 3                                   | (0.28)                                                   | -                                  | 7                                   | (0.11)                                                   | 0.13                               |
| 6                                                                                   | CHATTISGAR H                                                                        | 4                                   | 0.95                                                     | 0.34                               | 4                                    | (0.35)                                                   | 0.00                               | 7                                   | 0.97                                                     | 0.00                               | 5                                   | (0.06)                                                   | -                                  |
| 7                                                                                   | DADRA AND NAGAR HAVELI                                                              |                                     |                                                          |                                    |                                      |                                                          |                                    | 1                                   | (0.43)                                                   | -                                  | 1                                   | (0.00)                                                   | -                                  |

-

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|   8 | DELHI             | 473   | 535.27    | 735.76   | 416   | (313.09)   | 376.05   | 488   | 33.41     | 701.55    | 423   | 19.43      | 869.75    |
|-----|-------------------|-------|-----------|----------|-------|------------|----------|-------|-----------|-----------|-------|------------|-----------|
|   9 | FOREIGN COUNTRY   | 5,716 | 1,252.55  | 6,064.72 | 5,308 | 622.40     | 6,552.51 | 7,090 | 2,567.21  | 8,164.64  | 7,629 | (1,416.68) | 12,744.33 |
|  10 | GOA               | 16    | 0.56      | 0.33     | 34    | (1.96)     | 0.02     | 52    | 9.30      | 3.11      | 23    | (0.55)     | 1.06      |
|  11 | GUJARAT           | 49    | 128.92    | 22.14    | 51    | 1.71       | 3.72     | 91    | 6.16      | 19.40     | 104   | (160.86)   | 15.60     |
|  12 | HARYANA           | 122   | (100.56)  | 36.70    | 84    | (15.93)    | 22.97    | 123   | 1,663.57  | 331.28    | 118   | 2,564.11   | 491.68    |
|  13 | HIMACHAL PRADESH  | 8     | 0.16      | 0.04     | 4     | 0.03       | 0.02     | 7     | 0.02      | 0.02      | 3     | (0.04)     | -         |
|  14 | JAMMU AND KASHMIR | 3     | (0.02)    | 0.00     | 3     | 0.02       | 0.01     | 1     | (0.01)    | -         |       |            |           |
|  15 | JHARKHAN D        | 2     | 0.02      | 0.01     | 10    | 0.04       | 0.04     | 10    | (0.02)    | 0.00      | 5     | (0.02)     | 0.00      |
|  16 | KARNATAK A        | 200   | 0.85      | 263.97   | 201   | 16.29      | 1,000.59 | 255   | (49.51)   | 875.10    | 287   | (9.98)     | 599.27    |
|  17 | KERALA            | 22    | 2.24      | 2.21     | 13    | 1.68       | 1.84     | 28    | (1.69)    | 0.68      | 26    | (3.53)     | 0.83      |
|  18 | MADHYA PRADESH    | 21    | 1.40      | 12.63    | 20    | 1.41       | 0.70     | 39    | 3.71      | 16.23     | 32    | (0.01)     | 10.37     |
|  19 | MAHARASH TRA      | 2,329 | 17,255.46 | 8,705.86 | 2,428 | 13,066.71  | 6,814.26 | 2,945 | 16,126.94 | 10,186.64 | 2,965 | 23,285.84  | 12,335.27 |
|  20 | MANIPUR           |       |           |          |       |            |          |       |           |           | 1     | (0.11)     | -         |
|  21 | MEGHALAY A        | 1     | (0.00)    | -        |       |            |          |       |           |           |       |            |           |
|  22 | ODISHA            | 9     | (1.75)    | 0.01     | 20    | (4.12)     | 0.04     | 23    | (0.01)    | 0.07      | 21    | (1.69)     | 0.00      |
|  23 | PUNJAB            | 6     | 0.35      | 0.14     | 9     | (2.28)     | 0.10     | 17    | (0.94)    | 0.24      | 22    | (30.73)    | 0.79      |

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| 24   | RAJASTHAN     | 17    | 1.27      | 0.85      | 13    | 1.82      | 1.09      | 13     | 2.57      | 0.90      | 15     | (1.32)    | 0.05      |
|------|---------------|-------|-----------|-----------|-------|-----------|-----------|--------|-----------|-----------|--------|-----------|-----------|
| 25   | SIKKIM        |       |           |           | 2     | (0.02)    | 0.25      | 1      | 0.01      | 0.00      |        |           |           |
| 26   | TAMIL NADU    | 157   | 12.78     | 53.65     | 145   | (11.43)   | 40.81     | 180    | 154.68    | 86.53     | 160    | (182.11)  | 75.13     |
| 27   | TELENGAN A    | 60    | 2.02      | 23.25     | 56    | 11.37     | 9.83      | 66     | (3.25)    | 8.89      | 58     | 7.93      | 6.23      |
| 28   | TRIPURA       |       |           |           |       |           |           | 1      | (0.01)    | -         | 3      | (0.10)    | -         |
| 29   | UTTAR PRADESH | 64    | (3.18)    | 5.80      | 74    | (23.49)   | 2.31      | 86     | (2.55)    | 4.80      | 95     | (10.03)   | 13.68     |
| 30   | UTTARAKH AND  | 14    | 7.44      | 5.52      | 13    | (0.52)    | 15.30     | 12     | (1.35)    | 15.98     | 18     | (1.08)    | 24.63     |
| 31   | WEST BENGAL   | 187   | 52.51     | 45.78     | 187   | 21.26     | 23.40     | 313    | 44.82     | 87.68     | 248    | 8.76      | 91.23     |
|      | TOTAL         | 9,539 | 19,153.58 | 15,985.02 | 9,140 | 13,368.21 | 14,866.57 | 11,913 | 20,568.27 | 20,513.17 | 12,313 | 24,088.50 | 27,292.49 |