Microsoft charged for evading tax in India

Thanks to prince_niceguy for the news tip.

Microsoft has been charged Rs 256 ($57 million) in taxes and penalties by the service tax department in India.

The department found that Microsoft India's Gurgoan unit carried out marketing activities for its India operations and not for the Singapore unit as it had claimed. "We have finalised the notices which would be served very soon. The tax evasion pertains to the period from June 19, 2006 to December 12, 2007," a senior service tax official said.

Microsoft officials said they had not received any official communication from the tax department regarding the matter.

This is the second time Microsoft India have been in trouble with the service tax department of India. In a previous case Microsoft had to pay income tax generated from sale of software in India for six years from 1999 to 2005 that it owed.

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11 Comments

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hmm..there might be some miscalculations in seggrating the service/R&D & development center...and 57 million (if needs to be paid for true) isnt a big money for MS though ;-)