After Nokia and Royal Dutch Shell income tax (IT) department has sent the Indian software giant Microsoft’s arm which means that it has challenged the same payment notice.
Notification is sent to the IT department at Microsoft and the 2005-06 fiscal years began to seek its Indian revenues.
Details of the revenue from seeking work at Microsoft Research in India and several software development sites which is the world-wide promotion.
When reached for comment Microsoft India said that it is close to solving this problem appeals forum.
“Microsoft is in line with our in each jurisdiction with the income tax department Mumbai laws we are seeking relief (TP) on transfer pricing adjustments through the appropriate appeal forum” it said in an e-mailed statement.
According to reports IT departments notify its parent company headquartered in the United States Microsoft profits its R & D centers in India is due to the work carried out did not quantify the amount.
The company said: “As the matter is pending we are unable to provide further details or comment on the same and we are hopeful in Rangachary Committee recommended that research and development center will help facilitate the safe harbor TP resolution proceedings in the IT industry.”
Last year the Government has set up a team led by former Central Committee of direct taxes (CBDT) Chairman does not Rangachary leadership research and development center to solve taxation the domestic software companies “home service” income tax department India treatment and other issues and those relating to safety harbor provisions finalized and also like Central Board of Excise and Customs.
Safe Harbor Principles are international disclosure practices to check transfer pricing litigation – multinational companies accounting mechanisms to reduce their tax liability.
In March this year the Finnish mobile phone maker Nokia’s Indian subsidiary a notice requiring it to pay more than Rs. Their business transactions in the country suspected of tax evasion 200 billion rupees.
Similarly the income tax office in February 2012 India accused Shell the Anglo-Dutch oil giant Royal Dutch Shell as part of the group’s pricing is based on a transfer of shares Rs. 15220 crore thereby evading taxes.
Orders involving March 2009 issue of 870 million shares of overseas companies in India Shell Shell Gas BV.