Alcatel-Lucent under I-T dept scanner for tax evasion

Written by Press Trust of India | New Delhi | Updated: Mar 1 2009, 05:16am hrs
The Income Tax department on Friday conducted a survey of the Gurgaon offices of global telecom company Alcatel-Lucent over suspected evasion of tax on their income in India.

The tax officials want to ascertain the income of the company, taxes paid and the Tax Deducted at Source (TDS) made on the telecom equipment supplied to firms here, said a tax official.

When contacted, a company spokesperson said that the visit of the taxmen was part of a regular and routine survey.

The visit of the I-T department today (February 27, 2009) was for a survey that they conduct with companies on a regular basis. We are cooperating fully with the I-T department to provide all information as requested.

Alcatel-Lucent has been present in India since 1982 and endeavours to be a model corporate citizen. Our company follows global ethical standards for all compliance and taxation related matters, the company said in a statement.

The department which started the survey today morning has not yet quantified the amount of suspected evasion, if any, by the Paris-based company. The tax liability, if any, can only be ascertained after the survey is complete, officials said.

Alcatel, a foreign company, comes under the jurisdiction of the International Taxation department of Central Board of Direct Taxes. Alcatel-Lucent provides telecommunication solutions to service providers, enterprises and governments around the world, enabling these customers to deliver voice, data and video services.The company had recently expressed interest to expand its India operations in view of the huge growth in the mobile telephony space. It has also entered into a joint venture with state-owned telecom equipment company ITI to bid for BSNLs network expansion tender.

The joint venture has bagged a prestigious order for supplying mobile network in one of the zones.