Apr 17, 2012, 08.36 AM IST
The income tax department has issued fresh notices to telecom giant Bharti Airtel in connection with taxation of overseas roaming charges for financial years 2001-02 and 2006-07, reports CNBC-TV18.
This is in addition to the I-T department's Rs 1,067-crore tax demand notice for non-payment of TDS dues in the last four financial years in a similar case.
An Airtel spokesperson said in a statement to PTI that "this pertains to a matter where the I-T department is trying to treat inter-connect charges being paid by domestic telecom operators to international operators, as fee for technical services and recover withholding tax on that basis.
"The matter is sub-judice and the demand on the company stands stayed. The pre-deposit amount has been paid in compliance of the court order granting stay."
According to sources in the I-T department, fresh notices were issued to the firm in order to obtain financial documents and revenue collection figures of overseas roaming operations during those financial years and a tax demand will be raised after scrutinising this data.
The Income Tax department, earlier this year, had asked the company to pay a total tax of Rs 1,067.24 crore under Section 201 (consequences of failure to deduct or pay taxes) along with Section 195 (any person responsible for paying to a non-resident) of the I-T Act.
The tax demands raised for the four financial years were- 2007-08 (Rs 202.07 crore), 2008-09 (Rs 329.913), 2009-10 (Rs 313.577 crore) and 2010-11 (Rs 221.681 crore) on payments made by the company to "non-resident mobile service providers".
The I-T department had held that such payments are in nature of fee for technical services and are subjected to TDS deductions as per section 195 of the I-T Act.
The department, in its notice, had also said that for payments of such taxes, the location of the company's property or place of conducting the operations is not "relevant".
Bharti Airtel offers a variety of telecom services both in India as well abroad.
The company claims to have a subscriber base of over 230 million across 19 countries.
(With inpits from PTI)
Bharti Airtel stock price
On December 12, 2013, Bharti Airtel closed at Rs 323.50, down Rs 4.65, or 1.42 percent. The 52-week high of the share was Rs 373.50 and the 52-week low was Rs 266.95.
The company's trailing 12-month (TTM) EPS was at Rs 11.45 per share as per the quarter ended September 2013. The stock's price-to-earnings (P/E) ratio was 28.25. The latest book value of the company is Rs 135.70 per share. At current value, the price-to-book value of the company is 2.38.
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