Coming down heavily on the India based unit of the American Internet giant ‘Google Inc ‘, the Directorate of Enforcement (ED) has served notice to Google India Private Limited for illegal mode of money transfer from the country.
Taking serious note of the issue, the ED initiated probe into the matter and found that Google India has swindled Rs 12 crores in the last six years.
As informed by one of the senior ED official, Google India has been transferring the income generated in India to its Ireland office without keeping Reserve Bank of India (RBI) in the loop.
Recently, Google India hogged the limelight when Delhi High Court sought removal of objectionable content from the search engine. As a matter of fact, the Google India generates crores through advertisements
which it directly transfers to its associate body in foreign countries without paying the tax to the RBI.
Interestingly, to transfer the revenue, Google India has established two other companies in the country. As per the documents available with the Income Tax department Google India has invested huge amount of money in these two firms.
If the officials are to be believed, the accounts record reveal that Google India has projected manipulative figures in its record books on the purchase of technology and services from its own company. In order to tighten the noose around the firm, the Income Tax department is keeping an eye on the tax evasion by the Google while ED is trying to get the details of money transfer. The ED is taking assistance from RBI in this regard.
Google India might have to pay the fine if found flouting the FEMA norms.