BBC admits to paying lower taxes in India: Report
What's the story
The British Broadcasting Corporation (BBC) has acknowledged that it may have paid lower taxes in India than its liability, the Hindustan Times reported, citing Central Board of Direct Taxation (CBDT) officials.
This comes nearly two months after the Enforcement Directorate (ED) registered a case against the broadcaster under the Foreign Exchange Management Act (FEMA) for alleged foreign exchange violation.
Context
Why does this story matter?
The BBC kicked up a political storm when it released a documentary about PM Narendra Modi and his relationship with the country's Muslim minority in January.
The Center, led by the Bharatiya Janata Party (BJP), banned the documentary, labeling it "colonial propaganda."
In February, Income Tax Department officials raided BBC offices after which the broadcaster alleged it was being tried under a vendetta.
Details
Has underreported Rs. 40 crore in ITR: BBC
According to the HT, the United Kingdom's government-supported broadcaster admitted in an email to the CBDT that it has allegedly underreported Rs. 40 crore of income in its Income Tax Return (ITR).
Meanwhile, CBDT officials said that the law is the same for everyone in the country, and there is no specific exception for either a media organization or a foreign entity.
Statement
BBC asked to file revised IT returns
CBDT officials added that the BBC needs to file a revised ITR for it to be taken seriously, as the email has no legal sanctity.
"The BBC must act as per the stated procedure or face the law. The department will continue to take action against it until the matter is taken to the logical conclusion," said an official.
Raids
Know about I-T raids on BBC offices
I-T sleuths raided the BBC offices in New Delhi and Mumbai in mid-February for possible tax evasion.
The "survey" lasted approximately 60 hours, during which authorities allegedly seized several papers and cloned the phones, desktops, and laptops of numerous BBC employees.
The BBC first stated that it was "fully cooperating" with the authorities, but afterward referred to it as a "vendetta by the government."
About
All about BBC documentary on Modi
The two-part BBC documentary titled India: The Modi Question delves into Modi's approach toward the Muslim community.
The first episode focuses on Modi's rise and his role as the state's Chief Minister during the 2002 Gujarat riots, which left over 2,000 dead.
The second part assesses India's social climate, such as the spate of mob lynchings by cow vigilantes since he became prime minister.