Google slapped with ED notice
11 Feb 2012
Internet giant Google has been slapped a foreign exchange violation notice by the Enforcement Directorate for alleged irregularities in transfer of funds to its foreign entities.
The Directorate has asked the Indian arm of the company to explain to it all permissions it obtained from RBI in this regard as also the source of the company's income in the country along with I-T returns filed earlier.
An NDTV report quoted a Google spokesperson as saying that the company had an obligation to its shareholders to set up a tax efficient structure and its present structure was in compliance with the tax rules in all the countries where it operated.
He added the company made a very substantial contribution to local and national taxation and provided employment for close to 2,000 people in India.
The report, quoting unnamed sources, said the ED was investigating the internet company for any violation of the norms laid down by the RBI in connection with transfer of funds abroad, including Ireland and also receiving similar investments from foreign shores.
The agency had obtained relevant data in this regard from the RBI and it would take up any possible penal action under the Foreign Exchange Management Act (FEMA) after going it scrutinised the documents.
