Income Tax department raids BBC's office in Delhi, Mumbai; corporation says 'fully cooperating,'

The Income Tax department on February 14  conducted survey operations at the BBC's offices in Delhi and Mumbai as part of an investigation into alleged tax evasion. The action, which led to a sharp political debate with the ruling BJP accusing the BBC of "venomous reporting" and the opposition questioning the timing of the move, comes weeks after the broadcaster aired a two-part documentary, "India: The Modi Question", on the prime minister and the 2002 Gujarat riots.

The survey is being carried out to investigate issues related to international taxation and transfer pricing of BBC subsidiary companies. BBC had been served notices in the past but was "defiant and non-compliant" and had significantly diverted its profits, they alleged. The department is looking at documents related to the business operations of the London-headquartered broadcaster and its Indian arms. The BBC said it is fully cooperating with tax authorities.

 "The Income Tax authorities are currently at the offices in New Delhi and Mumbai and we are fully cooperating. We hope to have this situation resolved as soon as possible," the press office of the BBC said on Twitter. 
The synchronised surprise action began at 11 am with Income Tax officials reaching the BBC offices in Delhi and in Mumbai and went on for several hours till late evening. BBC staffers were asked to keep their phones at a particular spot inside the premises and cooperate, officials said.

Besides, some computers were seized and an unquantified number of mobile phones those in office were being cloned, officials said. 

According to I-T rules, transfer pricing "generally refers to prices of transactions between associated enterprises which may take place under conditions differing from those taking place between independent enterprises. It refers to the value attached to transfers of goods, services and technology between related entities''.

 It also refers to the value attached to transfers between un-related parties which are controlled by a common entity. As news spread, curious onlookers and media crews gathered outside the BBC office at central Delhi's Kasturba Gandhi Marg. In Mumbai, the office is in the upscale Bandra Kurla Complex. As part of a survey, the Income Tax department only covers the business premises of a company and does not raid residences and other locations of its promoters or directors. 

The Supreme Court last week dismissed a plea seeking to impose a complete ban on the BBC in India in the wake of the controversial documentary, terming the petition "entirely misconceived" and "absolutely meritless". 

Meanwhile, Information and Broadcasting Minister Anurag Thakur said no one was above the law and the Income Tax department would share details about the survey it had carried out at the offices of BBC in New Delhi and Mumbai.
 "No one can be above the law of the country," Thakur told reporters in Kalyan when asked about the Income Tax surveys on the BBC offices in India. He said the Income Tax Department conducted surveys from time to time wherever there were some irregularities. "When the surveys are over, it issues a press note or holds a press briefing to share information. I believe that when the I-T Department will complete its survey, it will share details with you," Thakur said.