Trouble for Google India; gets Income-Tax dept notice

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New Delhi, Dec 8: The Income-Tax Department has issued a notice to the Indian arm of the World's popular Internet search engine Google saying it has not shown its entire income for taxation. Moreover, the IT dept claimed that the global search engine giant did not provide the complete picture of their business in India.

The latest move has come at a time when Union Telecom Minister Kapil Sibal was planning to pull up Google.

The department has questioned Google India's practice of paying tax on its net income from advertisements, after crediting a sizeable amount as distribution fees to Google Ireland.

Google India runs the 'Adwords' programme whereby advertisements that appear on its website are sold in India to Indian business establishments.

According to the report published in The Economic Times (December 8, 2011, Bangalore edition), for the assessment year 2008-09, Google India has admitted revenue of only Rs 7.49 crore instead of showing the "correct revenue of Rs 167.32 crore".

Meanwhile, the Income Tax dept has made a claim of Rs 74 crore for the year 2011 based on the companies tax on "gross income" and Tax Deducted at Source (TDS).

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