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Facebook,Google face heat on India tax

Delhi HC has put govt on notices over tax on Facebook,Google on their India income.

The Delhi High Court today sought responses of the Centre,Facebook India and Google India on a plea by former BJP ideologue K N Govindacharya for recovery of taxes on their income from operations in India.

8220;Issue notice to the respondents. The Centre is to file its reply within four weeks,8221; a bench of Justices Vipin Sanghi and Rajiv Shakdher said.

Govindacharya,presently a patron of 8216;Rashtriya Swabhimaan Aandolan8217;,in a public interest litigation PIL petition,has also sought directions to the Centre and the two websites to 8220;ensure proper accounting compliances as per RBI guidelines8221;.

The petition also sought a direction to ensure safety of the data of 50 million Indian users,which were transferred 8220;to the USA and being used for commercial gains in violation of the right to privacy.8221;

8220;Issue a writ of mandamus 8230;to ensure verification of all existing users and future new members of social networking websites with instructions not to do agreements with children below 13 years,8221; said the plea,filed through lawyer Virag Gupta.

The plea also sought creation of a national register of persons,indulging in sexual offences and heinous crimes and stopping such persons from joining social networking websites.

The petition,which listed the alleged violations of various terms by the websites,also sought a direction to the Centre to ensure that government officers 8220;do not use social networking websites through government computers8221; as they may pose threat to sensitive data and national computer network.

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8220;As per telecommunication minister8217;s statement in Parliament,the government lost 4 billion USD every year due to cyber-crimes and approximately 90 million government websites were hacked in last 3 years,8221; it said.

Govindacharya,in his PIL,said 8220;Facebook gross revenue for previous year was approximately 37 billion USD but they are not paying due taxes on their Indian operations as per the provisions of Double Tax Avoidance Agreement and the government is not taking any action to safeguard the national interest and the sovereignty of the country.8221;

Anonymous hackers have again threatened to attack the government websites from June nine 8220;to protest blocking of websites illegally sharing video contents,8221; the petition said.

It also sought directions to the Centre to impose penalty on social networking sites and other internet companies 8220;for non-verification of users and to recover damages for causing huge loss to the government and the Indian economy due to anonymous users8217; illegal operations through such sites.8221;

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Referring to a report of Mumbai ATS,the PIL said the accused of the July 13 blast in Mumbai last year were in touch with each other and the Indian Mujahideen operatives through Facebook since 2008.

8220;Facebook is one of prominent social networking website with more than 50 million Indian users and as per their own records approximately 5 to 6 per cent of their accounts are fake or being operated by anonymous users due to non-authentication of details by the company before opening of accounts as required by their terms of agreement,8221; it said.

The Centre8217;s KYC know your customer guidelines,applicable to the telecom companies are not being followed by the social sites which is 8220;causing the biggest security risk to the nation8221;,it said.

8220;As per reports,Facebook has further allowed account opening by children below 13 years of age who may be 1/3rd of their registered users just to exploit online gaming market and increase advertisement revenue,8221; it said.

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The plea is being filed to protect the interest of more than 1.5 crore Indian Children who have joined Facebook against the terms of agreement and public policy,Govindacharya said in his petition.

The children are being exposed to 8220;easy,free,convenient and anonymous8221; pornographic and objectionable materials which may lead to their exploitation as reflected in a TV show,anchored by Bollywood star Aamir Khan,he added.

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