Google gets forex violation notice from ED
The Enforcement Directorate (ED) has issued a foreign exchange violation notice to internet giant Google for alleged irregularities in transfer of funds to its foreign entities.
The Directorate has asked the Indian arm of the company to explain to it all the permissions it obtained from the Reserve Bank of India (RBI) in this regard, and its source of income in the country along with income tax returns filed earlier.
“We have an obligation to our shareholders to set up a tax -efficient structure, and our present structure is compliant with the tax rules in all the countries where we operate,” a Google spokesperson said.
The Enforcement Directorate, according to sources, is investigating if the internet search giant violated the norms laid down by the RBI with regard to transfer of funds abroad, including in Ireland and also receiving similar investments from foreign shores.
The agency has obtained relevant data in this regard from the RBI and would take up any possible penal action under the Foreign Exchange Management Act (Fema) after going through the documents.
