(a) the details of the instructions issued by the CBDT in
1996 regarding payment of tax by foreign TV Companies on
presumptive profit rate; and
(b) the steps taken by the Government to ensure that foreign
TV firms pay tax on actual revenue earnings and not evade tax
on the basis of 1996 circular?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI V. DHANANJAYA KUMAR)
(a) According to the guidelines issued by the Central Board
of Direct Taxes in 1996, taxable income of the foreign
telecasting companies in India is determined at 10% of
their gross receipts in India excluding the amount
retained by the advertising agents and the Indian agents.
The guidelines provided for the presumptive profit rate in
the absence of country-wise accounts maintained by the
foreign telecasting companies.
(b) The aforesaid guidelines are being reviewed in the
normal course and such a review is in no way based on any
question of tax evasion per se.