Journalism of Courage
In fresh trouble for Internet giant Google India,the Enforcement Directorate (ED) has issued a foreign exchange violation notice for alleged irregularities in transfer of funds to its foreign entities.
The ED has asked Google India to explain the permissions that the company has obtained from the RBI,as well as its source of income in the country,along with I-T returns filed earlier.
When contacted,a Google spokesperson said,We are yet to receive the notice and thereby are unable to comment on the specific details. We have an obligation to our shareholders to set up a tax-efficient structure,and our present structure is compliant with the tax rules in all the countries where we operate. We make a very substantial contribution to local and national taxation,and provide employment for close to 2,000 people in India.
The ED,according to sources,is investigating whether the Internet search giant violated the norms laid down by the RBI with regard to transfer of funds abroad,including to Ireland,and also received similar investments from foreign shores. The ED has obtained relevant data from the RBI and would take up possible penal action under the Foreign Exchange Management Act (FEMA).
A Delhi court had recently issued summons to 21 websites for allegedly committing offences of criminal conspiracy,sale of obscene books and obscene objects to young persons. Google India,one of the websites which received the summons,had filed their clarification,seeking quashing of summons and claiming that they did not commit any offence.
