Lok Sabha Question No. 777 (UNSTARRED), answered on 2015-07-24
Subject: Tax Evasion by Foreign Companies
Ministry: FINANCE
Asked by: KINJARAPU RAM MOHAN NAIDU, RAMA DEVI

**GOVERNMENT OF INDIA**

**MINISTRY OF FINANCE**

**DEPARTMENT OF REVENUE**

*******

**LOK SABHA**

**UNSTARRED QUESTION NO. 777**

**TO BE ANSWERED ON FRIDAY, THE 24** **TH** **JULY, 2015**

**SHRAVANA 02, 1937 (SAKA)**

**TAX EVASION BY FOREIGN COMPANIES**

777. SHRI RAM MOHAN NAIDU KINJARAPU:

SHRIMATI RAMA DEVI:

Will the Minister of FINANCE be pleased to state:

(a) the details of foreign companies operating in the country, State-wise including Andhra Pradesh along with the revenue/profits earned and taxes paid by them during the last three years and the current year;

(b) whether the above said companies have defaulted on payment of taxes during the said period, if so, the details of such companies during the said period, company-wise, year-wise;

(c) the details of losses of revenue to the exchequer during the said period; and

(d) the punitive action taken by the Government against the companies to recover the outstanding taxes along with the steps taken to check such practices?

**ANSWER**

**MINISTER OF STATE IN THE MINISTRY OF FINANCE**

**(SHRI JAYANT SINHA)**

(a): A total number of 8354 foreign companies are being assessed to tax under various tax jurisdictions in India. Total number of foreign companies assessed to tax in India, jurisdiction wise, is provided in Annexure – A. The details of revenue / profit earned and taxes paid by them during the last three years and the current year are being compiled.

*Continued on page 2/-*

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(b): There have been instances where certain foreign companies have failed to pay the taxes due from them. The company wise and year wise details of such companies that have failed to pay the taxes due from them during the said period are being compiled.

(c) & (d): Necessary actions and proceedings under the Income-tax Act, 1961 for ensuring tax compliance by the foreign companies are undertaken, wherever so required, to ensure that any loss of revenue to the exchequer is prevented. These include initiating proceedings of assessment and reassessment for determination of taxable income, proceedings for levy of penalty in cases of failure to accurately declare taxable income or to pay the tax due on such income, and proceedings for recovery of unpaid tax, including by way of attachment of assets of the defaulting company and their appropriation. Further, in cases where it is suspected that the assets of a company may be alienated or moved out of India to thwart later recovery in a case where a tax demand is likely to arise, assets are provisionally attached to prevent their alienation or movement out of India.

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**Annexure – A**

**Jurisdiction wise break up of foreign companies assessed to tax in India** :

| **Tax Jurisdiction**   | **Number of Foreign Companies**   |
|------------------------|-----------------------------------|
| Delhi                  | 1499                              |
| Hyderabad              | 101                               |
| Mumbai                 | 5334                              |
| Pune                   | 263                               |
| Chennai                | 390                               |
| Ahmedabad              | 42                                |
| Kolkata                | 105                               |
| Bangalore              | 620                               |
| **Total**              | **8354**                          |

**MOST URGENT**

**PARLIAMENT MATTER**

**TIMEBOUND**

F.No. 439/8/2015/FTD-I

Government of India

Ministry of Finance

Department of Revenue

Central Board of Direct Taxes

Foreign  Tax & Tax Research Division-I

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7 th Floor, ‘C’ Wing,

Hudco Vishala Building,   									Bhikaji Cama Place,

R.K. Puram, N.Delhi

Dated  the           July, 2015

**OFFICE MEMORANDUM**

**Sub:	Lok Sabha Unstarred Question No. 777 answered on 24.07.2015 regarding ‘Tax Evasion by Foreign Companies’ raised by Shri Ram Mohan Naidu Kanjarapu, M.P and Shrimati Rama Devi, M.P  – Reg.**

The undersigned is directed to refer to the letter of the Dy. DCIT (Hq.) of the office of the Principal Chief Commissioner of Income-tax (International Taxation), New Delhi dated 22.07.2015, providing partial inputs to the Parliament Question, in terms of station wise list of the number of foreign companies, which has resulted in an assurance to furnish pending details sought in the said question regarding foreign companies operating in India during the last three years and the current year.

2.	In view of the above, the undersigned is directed to request the Office of the Pr. CCIT(IT), New Delhi to provide the pending details in a consolidated manner in soft copy as well as hard copy, to this division, in a format enclosed herewith (Annexure-1), latest by **24** **th** **August, 2015** .

3.	The undersigned is further directed to request the Office of the Pr. CCIT(IT), New Delhi to provide consolidated data on CAP – I and CAP – II as on dated 31.03.2011, 31.03.2012, 31.03.2013, 31.03.2014 and 31.03.2015.

4.	This may be treated as **MOST URGENT** .

(E.V. Bhaskar)

Under Secretary (FT&TR-III(2)).

Telefax: 26179269, E-mail: us32eoi-dor@nic.in

**The Principal Chief Commissioner of Income-tax (International Taxation)**

**E-2 Block, Dr. S.P. Mukherjee Civic Centre,**

**Minto Road New Delhi-110002**

**1**

**Annexure - 1**

**For Part (a):**

**For AY 2012-13**

| **Sl. No.**   | **Name of company**   | **PAN**   | **Returned Income (In case of loss enter in col. 5)**   | **Returned Loss (In case of income, enter in col. 4)**   | **Taxes paid as per Returned Income**   | **CIT Charge**   |
|---------------|-----------------------|-----------|---------------------------------------------------------|----------------------------------------------------------|-----------------------------------------|------------------|
| **(1)**       | **(2)**               | **(3)**   | **(4)**                                                 | **(5)**                                                  | **(6)**                                 | **(7)**          |
| **1.**        |                       |           |                                                         |                                                          |                                         |                  |
| **2.**        |                       |           |                                                         |                                                          |                                         |                  |

**For AY 2013-14**

| **Sl. No.**   | **Name of company**   | **PAN**   | **Returned Income (In case of loss enter in col. 5)**   | **Returned Loss (In case of income, enter in col. 4)**   | **Taxes paid as per Returned Income**   | **CIT Charge**   |
|---------------|-----------------------|-----------|---------------------------------------------------------|----------------------------------------------------------|-----------------------------------------|------------------|
| **(1)**       | **(2)**               | **(3)**   | **(4)**                                                 | **(5)**                                                  | **(6)**                                 | **(7)**          |
| **1.**        |                       |           |                                                         |                                                          |                                         |                  |
| **2.**        |                       |           |                                                         |                                                          |                                         |                  |

**For AY 2014-15**

| **Sl. No.**   | **Name of company**   | **PAN**   | **Returned Income (In case of loss enter in col. 5)**   | **Returned Loss (In case of income, enter in col. 4)**   | **Taxes paid as per Returned Income**   | **CIT Charge**   |
|---------------|-----------------------|-----------|---------------------------------------------------------|----------------------------------------------------------|-----------------------------------------|------------------|
| **(1)**       | **(2)**               | **(3)**   | **(4)**                                                 | **(5)**                                                  | **(6)**                                 | **(7)**          |
| **1.**        |                       |           |                                                         |                                                          |                                         |                  |
| **2.**        |                       |           |                                                         |                                                          |                                         |                  |

**For AY 2015-16 (if any)**

| **Sl. No.**   | **Name of company**   | **PAN**   | **Returned Income (In case of loss enter in col. 5)**   | **Returned Loss (In case of income, enter in col. 4)**   | **Taxes paid as per Returned Income**   | **CIT Charge**   |
|---------------|-----------------------|-----------|---------------------------------------------------------|----------------------------------------------------------|-----------------------------------------|------------------|
| **(1)**       | **(2)**               | **(3)**   | **(4)**                                                 | **(5)**                                                  | **(6)**                                 | **(7)**          |
| **1.**        |                       |           |                                                         |                                                          |                                         |                  |
| **2.**        |                       |           |                                                         |                                                          |                                         |                  |

**For Part (b):**

| **Sl. No.**   | **Name of company**   | **PAN**   | **Outstanding demand as on 31.03.2013**   | **Outstanding demand as on 31.03.2014**   | **Outstanding demand as on 31.03.2015**   |
|---------------|-----------------------|-----------|-------------------------------------------|-------------------------------------------|-------------------------------------------|
| **(1)**       | **(2)**               | **(3)**   | **(4)**                                   | **(5)**                                   | **(6)**                                   |
| **1.**        |                       |           |                                           |                                           |                                           |
| **2.**        |                       |           |                                           |                                           |                                           |